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Brexit and macroprudential regulation: a DSGE perspective


  • Jürgen Jerger

    () (University of Regensburg
    Leibniz Institute for East and Southeast European Studies)

  • Jenny Körner

    (European Central Bank)


Abstract This paper uses a small and simple theoretical DSGE model in order to conduct some exercises in comparative dynamics of shocks that can be associated with Brexit. We do so by comparing two policy environments, one where a flexible macroprudential regulation (FMR) is in place and one, where this is not the case. This enables us to evaluate whether and to what extent FMR helps to mitigate the Brexit related shocks. We conclude that FMR would indeed be helpful, although in quantitative terms only slightly so.

Suggested Citation

  • Jürgen Jerger & Jenny Körner, 2019. "Brexit and macroprudential regulation: a DSGE perspective," International Economics and Economic Policy, Springer, vol. 16(1), pages 51-64, March.
  • Handle: RePEc:kap:iecepo:v:16:y:2019:i:1:d:10.1007_s10368-018-00429-8
    DOI: 10.1007/s10368-018-00429-8

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    References listed on IDEAS

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    11. Jürgen Jerger & Jenny Körner, 2018. "Assessing macroprudential regulation: the role of the zero lower bound," Applied Economics Letters, Taylor & Francis Journals, vol. 25(9), pages 580-583, May.
    12. Margarita Rubio & José A. Carrasco-Gallego, 2015. "Macroprudential and Monetary Policy Rules: a Welfare Analysis," Manchester School, University of Manchester, vol. 83(2), pages 127-152, March.
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