Synergies Between Monetary and Macroprudential Policies in Thailand

Author/Editor:

Ichiro Fukunaga ; Manrique Saenz

Publication Date:

June 5, 2020

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

A dynamic stochastic general equilibrium (DSGE) model tailored to the Thai economy is used to explore the performance of alternative monetary and macroprudential policy rules when faced with shocks that directly impact the financial cycle. In this context, the model shows that a monetary policy focused on its traditional inflation and output objectives accompanied by a well targeted counter-cyclical macroprudential policy yields better macroeconomic outcomes than a lean-against-the-wind monetary policy rule under a wide range of assumptions.

Series:

Working Paper No. 20/83

English

Publication Date:

June 5, 2020

ISBN/ISSN:

9781513537023/1018-5941

Stock No:

WPIEA2020083

Format:

Paper

Pages:

28

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