Financial stability and interest-rate policy A quantitative assessment of costs and benefit

• Published in: The Canadian journal of economics Vol. 53; no. 3; pp. 1246 - 1273
• Main Authors: Laséen, Stefan, Pescatori, Andrea
• Format: Journal Article
• Language: English
• Published: Malden Wiley 01.08.2020; Wiley Subscription Services, Inc; Blackwell Publishing Ltd
• Subjects: Analysis; Approximation; Courts; Housing; Housing costs; Housing prices; Interest rates; Monetary policy; Mortgages; Prices; Canada

Should monetary policy use its short-term policy rate to stabilize the growth in household credit and housing prices with the aim of promoting financial stability? We ask this question for the case of Canada. We find that, to a first approximation, the answer is no. Afin de favoriser la stabilité fi...