IMF Working Papers

Synergies Between Monetary and Macroprudential Policies in Thailand

By Ichiro Fukunaga, Jie Yu

June 5, 2020

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Ichiro Fukunaga, and Jie Yu. Synergies Between Monetary and Macroprudential Policies in Thailand, (USA: International Monetary Fund, 2020) accessed November 9, 2024

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Summary

A dynamic stochastic general equilibrium (DSGE) model tailored to the Thai economy is used to explore the performance of alternative monetary and macroprudential policy rules when faced with shocks that directly impact the financial cycle. In this context, the model shows that a monetary policy focused on its traditional inflation and output objectives accompanied by a well targeted counter-cyclical macroprudential policy yields better macroeconomic outcomes than a lean-against-the-wind monetary policy rule under a wide range of assumptions.

Subject: Financial sector policy and analysis, Financial sector stability, Housing, Inflation, Macroprudential policy, Macroprudential policy instruments, National accounts, Prices

Keywords: Dynamic stochastic general equilibrium model, Financial sector stability, Household LTV cap, Housing, Housing loan, Inflation, Inflation gap, Inflation stability, Lean-against-the-wind monetary policy rule, Loan, LTV rule, Macroprudential policies, Macroprudential policy, Macroprudential policy instruments, Monetary policy, Monetary policy transmission, Taylor, Thailand, World interest rate, World interest rate shock, WP, X inflation gap

Publication Details

  • Pages:

    28

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2020/083

  • Stock No:

    WPIEA2020083

  • ISBN:

    9781513537023

  • ISSN:

    1018-5941