An obvious cost of “leaning against the wind” is a weaker economy if no (financial) crisis
occurs. Possible benefits are lower probabilities and smaller magnitudes of crises. A second …

In this paper, we build a dynamic stochastic general-equilibrium model with housing and
household debt, and compare the effectiveness of monetary policy, housing-related fiscal …

We investigate how the level of household indebtedness affects the monetary transmission
mechanism in the US economy. Using state‐dependent local projection methods, we find …

This survey systematizes the rapidly growing literature on the influence of monetary policy
and macroprudential policy on the macroeconomy. It examines the impact of monetary …

We document that the United States and other G7 economies have been characterized by
an increasingly negative business-cycle asymmetry over the last three decades. This finding …

This paper investigates the responses of house prices and household credit to monetary
policy shocks in Norway, using Bayesian structural VAR models. The analysis indicates that …

We use a quantitative asset pricing model to “reverse‐engineer” the sequences of shocks to
housing demand and lending standards needed to replicate the boom–bust patterns in US …

Can monetary policy be used to promote financial stability? We answer this question by
estimating the impact of a monetary policy shock on private-sector leverage and the …

We assess the effects of financial shocks on inflation, and to what extent financial shocks
can account for the “missing disinflation” during the Great Recession. We apply a Bayesian …

This paper analyzes the cost-benefit trade-off of leaning against the wind (LAW) in monetary
policy. Our starting point is a New Keynesian regime-switching model where the economy …