
Output Gap in Presence of Financial Frictions and Monetary Policy Trade-offs »
Journal Issue
Volume/Issue: 2014/128
Series: IMF Working Papers
Author(s): Francesco Furlanetto , Paolo Gelain , and Marzie Taheri Sanjani
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 18 July 2014
DOI: http://dx.doi.org/10.5089/9781498305327.001
ISBN: 9781498305327
Keywords: Business cycles, Economic growth, Econometric models, Potential output, Macroprudential Policy, Monetary policy, Financial Frictions, Optimal Monetary Policy, Output Gap, inflation
The recent global financial crisis illustrates that financial frictions are a significant source of volatility in the economy. This paper investigates monetary policy stabilization in an environment where financial...