Optimal Time-Consistent Macroprudential Policy
---- Acknowledgements ----
We are grateful for the support of the National Science Foundation under awards 1325122 (Mendoza) and 1324395 (Bianchi), Mendoza also acknowledges the support of the Bank for International Settlements under a 2014 Research Fellowship and the Jacobs Levy Center for Quantitative Financial Research of the Wharton School under a 2014-15 research grant. We thank Fernando Alvarez, Gianluca Benigno, John Cochrane, Alessandro Dovis, Charles Engel, Lars Hansen, Zheng Liu, Guido Lorenzoni, and Tom Sargent for helpful comments and discussions. We also acknowledge comments by audiences at several seminar and conference presentations since 2010. Some material included here circulated earlier under the title “Overborrowing, Financial Crises and Macroprudential Policy”, NBER WP 16091, June 2010. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.