Assessing macroprudential regulation: the role of the zero lower bound |
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| Authors: | Jürgen Jerger Jenny Körner |
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| Affiliation: | 1. Department of Economics, University of Regensburg, Regensburg, Germany;2. Leibniz Institute for East and Southeast European Studies Regensburg, Germany |
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| Abstract: | We look at the interaction between the zero lower bound (ZLB) and flexible macroprudential regulation (FMR). After an adverse demand shock, FMR contributes to financial stability irrespective of the ZLB and also to macroeconomic stabilization if the ZLB binds. |
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| Keywords: | (Flexible) macroprudential regulation zero lower bound financial stability |
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