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A Welfare Analysis of Macroprudential Policy Rules in the Euro Area

Listed author(s):
  • Jean-Christophe Poutineau

    ()

    (CREM - Centre de Recherche en Economie et Management - UNICAEN - Université Caen Normandie - UR1 - Université de Rennes 1 - CNRS - Centre National de la Recherche Scientifique)

  • Gauthier Vermandel

    ()

    (PSL - PSL Research University, LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine)

In an estimated DSGE model of the European Monetary Union that accounts for financial differences between core and peripheral countries, we find that country-adjusted macroprudential measures lead to significant welfare gains with respect to a uniform macroprudential policy rule that reacts to union wide financial developments. However, peripheral countries are the winners from the implementation of macroprudential measures while core countries incur welfare losses, thus questioning the interest of adopting coordinated macroprudential measures with peripheral countries.

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File URL: https://halshs.archives-ouvertes.fr/halshs-01315085v2/document
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Paper provided by HAL in its series Post-Print with number halshs-01315085.

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Date of creation: 12 May 2016
Publication status: Published in Revue d Economie Politique, Editions Dalloz, 2016, 127 (3), à paraître
Handle: RePEc:hal:journl:halshs-01315085
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01315085v2
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