Topic: Credit and credit aggregates

1. Optimal Monetary Policy during Endogenous Housing-Market Boom-Bust Cycles

   Working Paper 2009-32 - Hajime Tomura

   This paper uses a small-open economy model for the Canadian economy to examine the optimal Taylor-type monetary policy rule that stabilizes output and inflation in an environment where endogenous boom-bust cycles in house prices can occur.

   Topics: Credit and credit aggregates; Financial stability; Inflation targets

2. Measures of Aggregate Credit Conditions and Their Potential Use by Central Banks

   Discussion Paper 2009-12 - Alejandro García, Andrei Prokopiw

   Understanding the nature of credit risk has important implications for financial stability. Since authorities – notably, central banks – focus on risks that have systemic implications, it is crucial to develop ways to measure these risks.

   Topics: Credit and credit aggregates; Financial markets; Financial stability