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The interaction between macroprudential and monetary policies: The cases of Norway and Sweden

Cao, Jin ; Dinger, Valeriya ; Grodecka-Messi, Anna LU ; Juelsrud, Ragnar and Zhang, Xin (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:
author
; ; ; and
organization
publishing date
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}},
}