{
  "title": "The Interaction of Monetary and Macroprudential Policies",
  "publication": "Policy Papers, December 29, 2012",
  "sourceUrl": "https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/the-interaction-of-monetary-and-macroprudential-policies-pp4732",
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  "summary": "The recent crisis showed that price stability does not guarantee macroeconomic stability. In several countries, dangerous financial imbalances developed under low inflation and small output gaps. To ensure macroeconomic stability, policy has to include financial stability as an additional objective.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Publication date: December 29, 2012\n- Core observation: The recent crisis showed that price stability does not guarantee macroeconomic stability.\n- Problem identified: In several countries, dangerous financial imbalances developed under low inflation and small output gaps.\n- Proposed change in policy stance: To ensure macroeconomic stability, policy has to include financial stability as an additional objective."
    },
    {
      "heading": "Key findings",
      "content": "- Monetary policy alone is not well suited to target specific sources of financial imbalances.\n- Macroprudential tools can target specific sources of financial imbalances and include a range of constraints on leverage and the composition of balance sheets.\n- Effective macroprudential policies could:\n  - Contain risks ex ante.\n  - Help build buffers to absorb shocks ex post."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Adopt financial stability as an explicit additional policy objective alongside price stability.\n- Develop and deploy macroprudential tools that:\n  - Target specific sources of financial imbalances.\n  - Constrain leverage.\n  - Influence the composition of balance sheets.\n- Use macroprudential policy to complement monetary policy rather than substitute for it, given differences in targeting and instruments."
    },
    {
      "heading": "Metadata and publication notes",
      "content": "- Format: Web landing page with PDF download available.\n- Citation preview on page: The Interaction of Monetary and Macroprudential Policies , (USA: International Monetary Fund, 0) accessed 9/16/2026\n\nThe Interaction of Monetary and Macroprudential Policies — December 29, 2012; The Interaction of Monetary and Macroprudential Policies , (USA: International Monetary Fund, 0) accessed 9/16/2026\n\n---\n\n Content in this bundle\n\n- The Interaction of Monetary and Macroprudential Policies; IMF Policy Papers; January 29, 2013\n  - The Interaction of Monetary and Macroprudential Policies; IMF Policy Papers; January 29, 2013 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - The Interaction of Monetary and Macroprudential Policies; IMF Policy Papers; January 29, 2013 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/the-interaction-of-monetary-and-macroprudential-policies-pp4732"
    }
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    "Published: December 29, 2012",
    "Series: Policy Papers",
    "Publication date: December 29, 2012",
    "Core observation: The recent crisis showed that price stability does not guarantee macroeconomic stability.",
    "Problem identified: In several countries, dangerous financial imbalances developed under low inflation and small output gaps.",
    "Proposed change in policy stance: To ensure macroeconomic stability, policy has to include financial stability as an additional objective.",
    "Monetary policy alone is not well suited to target specific sources of financial imbalances.",
    "Macroprudential tools can target specific sources of financial imbalances and include a range of constraints on leverage and the composition of balance sheets.",
    "Effective macroprudential policies could:",
    "Adopt financial stability as an explicit additional policy objective alongside price stability.",
    "Develop and deploy macroprudential tools that:",
    "Use macroprudential policy to complement monetary policy rather than substitute for it, given differences in targeting and instruments.",
    "Format: Web landing page with PDF download available.",
    "Citation preview on page: The Interaction of Monetary and Macroprudential Policies , (USA: International Monetary Fund, 0) accessed 9/16/2026",
    "**The Interaction of Monetary and Macroprudential Policies; IMF Policy Papers; January 29, 2013**"
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