Synergies between Monetary and Macroprudential Policies in Thailand

29 Pages Posted: 7 Jul 2020

See all articles by Ichiro Fukunaga

Ichiro Fukunaga

Bank of Japan

Manrique Saenz

International Monetary Fund (IMF)

Date Written: June 2020

Abstract

A dynamic stochastic general equilibrium (DSGE) model tailored to the Thai economy isused to explore the performance of alternative monetary and macroprudential policy ruleswhen faced with shocks that directly impact the financial cycle. In this context, the modelshows that a monetary policy focused on its traditional inflation and output objectivesaccompanied by a well targeted counter-cyclical macroprudential policy yields bettermacroeconomic outcomes than a lean-against-the-wind monetary policy rule under a widerange of assumptions.

JEL Classification: E17, E58, E01, E52, G21, K2, E63

Suggested Citation

Fukunaga, Ichiro and Saenz, Manrique, Synergies between Monetary and Macroprudential Policies in Thailand (June 2020). Available at SSRN: https://ssrn.com/abstract=3642659 or http://dx.doi.org/10.2139/ssrn.3642659

Ichiro Fukunaga (Contact Author)

Bank of Japan ( email )

CPO Box 203
Tokyo, 100-91
Japan

Manrique Saenz

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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