Autoren
Erscheinungsdatum
DOI
10.1257/aeri.20200310
JEL Classification
E43
E44
E52
E58
F33
Schlagworte
Geldpolitik
Wirtschafts- & Finanzkrisen
Can central banks defuse rising stability risks in financial booms by leaning against the wind with higher interest rates? This paper studies the state-dependent effects of monetary policy on financial crisis risk. Based on the near-universe of advanced economy financial cycles since the nineteenth century, we show that discretionary leaning against the wind policies during credit and asset price booms are more likely to trigger crises than prevent them.
