This paper examines the interactions of macroprudential and monetary policies.We find, usinga range of macroeconomic models used at the European CentralBank, that in the long run, a 1% bank capital requirement increase has a smallimpact on GDP. In the short run, GDP declines by 0.15-0.35%. Under a strongermonetary policy reaction, the impact falls to 0.05-0.25%.The paper also examines how capital requirements and the conduct of macropru-dential policy affect the monetary transmission mechanism. Higher bank leverageincreases the economy’s vulnerability to shocks but also monetary policy’s abilityto offset them. Macroprudential policy diminishes the frequency and severity offinancial crises thus eliminating the need for extremely low interest rates. Counter-cyclical capital measures reduce the neutral real interest rate in normal times.

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https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2376~7e9a0cae47.en.pdf?8908871d8b18916163d38fccd500aa87

Извор: Европска Централна Банка - 02.2020