Monetary policy tradeoffs between financial stability and price stability
研究了利率政策如何影响金融稳定，在银行可能因短期负债挤兑而被迫折价出售资产的环境中，发现最优政策会牺牲价格稳定和产出稳定来支持投资。
Abstract We analyze the impact of interest rate policy on financial stability in an environment where banks can experience runs on their short‐term liabilities forcing them to sell assets at fire‐sale prices. Price adjustment frictions and a state‐dependent risk of financial crisis create the possibility of a policy tradeoff between price stability and financial stability. Focusing on Taylor rules with monetary policy possibly reacting to banks’ short‐term liabilities, we find that the optimized policy uses the extra tool to support investment at the expense of higher inflation and output volatility.