The interaction between macroprudential and monetary policies: The cases of Norway and Sweden
(2020) In Norges Bank Working Paper- Abstract
- To shed light on the interaction between macroprudential and monetary policies, we study the inward transmission of foreign monetary policy in conjunction with domestic macroprudential and monetary policies in Norway and Sweden. Using detailed bank-level data we show how Norwegian and Swedish banks’ lending reacts to monetary policy surprises arising abroad, controlling for the domestic macroprudential stance and the interaction between monetary and macroprudential policies. In both countries, the domestic macroprudential policy helps mitigate the effects arising after foreign monetary surprises.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/2025c7a1-999d-4883-87aa-baae63be41c9
- author
- Cao, Jin ; Dinger, Valeriya ; Grodecka-Messi, Anna LU ; Juelsrud, Ragnar and Zhang, Xin
- organization
- publishing date
- 2020-07-20
- type
- Working paper/Preprint
- publication status
- published
- subject
- keywords
- monetary policy, macroprudential policy, policy interactions, bank lending, inward transmission, international bank lending channel
- in
- Norges Bank Working Paper
- issue
- 2020:8
- pages
- 36 pages
- publisher
- Norges Bank
- language
- English
- LU publication?
- yes
- id
- 2025c7a1-999d-4883-87aa-baae63be41c9
- alternative location
- https://static.norges-bank.no/contentassets/ee208b8108004205a58847cd208803da/wp_8_2020.pdf?v=07/07/2020115648&ft=.pdf
- date added to LUP
- 2020-07-20 11:35:14
- date last changed
- 2022-10-25 15:45:42
@misc{2025c7a1-999d-4883-87aa-baae63be41c9, abstract = {{To shed light on the interaction between macroprudential and monetary policies, we study the inward transmission of foreign monetary policy in conjunction with domestic macroprudential and monetary policies in Norway and Sweden. Using detailed bank-level data we show how Norwegian and Swedish banks’ lending reacts to monetary policy surprises arising abroad, controlling for the domestic macroprudential stance and the interaction between monetary and macroprudential policies. In both countries, the domestic macroprudential policy helps mitigate the effects arising after foreign monetary surprises.}}, author = {{Cao, Jin and Dinger, Valeriya and Grodecka-Messi, Anna and Juelsrud, Ragnar and Zhang, Xin}}, keywords = {{monetary policy, macroprudential policy, policy interactions, bank lending, inward transmission, international bank lending channel}}, language = {{eng}}, month = {{07}}, note = {{Working Paper}}, number = {{2020:8}}, publisher = {{Norges Bank}}, series = {{Norges Bank Working Paper}}, title = {{The interaction between macroprudential and monetary policies: The cases of Norway and Sweden}}, url = {{https://static.norges-bank.no/contentassets/ee208b8108004205a58847cd208803da/wp_8_2020.pdf?v=07/07/2020115648&ft=.pdf}}, year = {{2020}}, }