The Global Financial Cycle, Monetary Policies, and Macroprudential Regulations in Small, Open Economies

Bibliographic Data

ID11967976
AuthorsGregory H Bauer (0000-0001-7247-0915, University of Rochester, corresponding author), Gregory Bauer (Simon Business School, University of Rochester, Rochester, New York, United States), Gurnain Kaur Pasricha (Bank of Canada), Gurnain Pasricha (Bank of Canada), Rodrigo Sekkel (0000-0002-4050-4161, Bank of Canada), Yaz Terajima (0000-0001-8161-8096, Bank of Canada)
Year2018
Volume44
Issue2
Pages81-99
Publication date2018-06-01
Open AccessNo
TypeARTICLE
VenueCanadian Public Policy (JOURNAL)
Journal identifiersISSN: 0317-0861 • E-ISSN: 1911-9917
PublisherUniversity of Toronto Press Inc. (UTPress) (PUBLISHER)
DOI10.3138/cpp.2017-018
OpenAlexW2522052268
LanguageEN
Citations received1
References cited66

This article analyzes the implications of the global financial cycle for conventional and unconventional monetary policies and macroprudential policy in small, open economies such as Canada's. The article starts by summarizing recent work on global financial cycles. These cycles cause time variation in global risk premia, which affects the transmission mechanisms of both conventional and unconventional monetary policies in small, open economies. The article then summarizes new work showing that the central banks' leaning against the effects of the global financial cycle would typically be too costly. The article concludes with some suggestions for the formation of macroprudential policies

Business cycle · Economics · Financial crisis · Financial Integration · Financial market · Macroeconomics · Macroprudential regulation · Monetary economics · Monetary policy · Small open economy · Systemic risk · Transmission (telecommunications · Transmission channel · Work (physics · Banking stability, regulation, efficiency · Engineering · Global Financial Crisis and Policies · Monetary Policy and Economic Impact · Finance

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