Series: IMF Working Papers
Author(s): Lars Svensson
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 11 January 2016
Keywords: macroprudential policy, unemployment, unemployment rate, debt, marginal cost, benchmark, Monetary Policy (Targets, Instruments, and Effects), All Countries
“Leaning against the wind” (LAW) with a higher monetary policy interest rate may have benefits in terms of lower real debt growth and associated lower probability of a financial crisis but has costs in terms of hig...