| Budget Amount *help |
¥4,160,000 (Direct Cost: ¥3,200,000、Indirect Cost: ¥960,000)
Fiscal Year 2021: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
Fiscal Year 2020: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
Fiscal Year 2019: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
Fiscal Year 2018: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
|
|---|
| Outline of Final Research Achievements |
In this research, we build a New Keynesian model with banks and investigate the infuence of possible bank default and bank leverage constraints on monetary and macroprudential policy prescriptions. We find that a macroprudential policy that limits bank leverage reduces the risk of bank default and improves long-run welfare. In the short run, a macroprudential-flavored" monetary policy can reduce financial propagation by affecting bank shadow values, while countercyclical capital regulation is effective for stabilizing bank leverage. Our study shows that introducing countercyclicality to bank capital regulation achieves little welfare improvement if monetary policy is already used to mitigate financial acceleration. The jointly optimal policies suggest that policymakers assign countercyclical macroprudential roles to monetary policy, and bank capital regulation should focus on the desired level of prudence.
|
