This entails the expansion or contraction tools of monetary policy pdf government expenditures related to specific government programs such as building roads or infrastructure, military expenditures and social welfare programs. Gregory Mankiw, Principles of Economics. This page was last edited on 12 November 2017, at 15:53.
This paper assesses the individual effects on economic performance of different monetary policy interest rates for a central bank. The empirical evidence from Turkey suggests that the four interest rates we consider as policy tools for the central bank affect economic state variables in different magnitudes. Thus, selecting different policy tools provides an environment that allows determining the effects of each tool for differentiated economic outcomes. Check if you have access through your login credentials or your institution. The authors would like to thank Salih Fendoğlu, Hakan Kara, Rana Nelson, Fatih Özatay and Hande Küçük Yeşil for their valuable comments.
Monetary policy and macroprudential policy: Rivals or teammates? Accommodative monetary policy boosts the credit cycle. Monetary tightening has a positive impact on bank leverage. The effect of the higher bank capital ratio is associated with uncertainty.
Coordination of monetary and macroprudential policies is necessary to avoid an undesirable policy mix. This supports the view that accommodative monetary policy contributes to a build-up of financial vulnerabilities, i. On the other hand, the effect of the higher bank capital ratio is associated with some degree of uncertainty. For these and other reasons, coordination of the two policies is necessary to avoid an undesirable policy mix preventing effective achievement of the main objectives in the two policy areas. It is a government authority founded on 1 April 1993 when the Office of the Exchange Fund and the Office of the Commissioner of Banking merged.