Interaction between Monetary Policy and Bank Regulation. Monetary Dialogue 23 September 2015

Please note: Each In-Depth Analysis is assigned a DOI (digital object identifier), which is a safe and long term way of ensuring a hyperlink to the full text of this report. However, when ESO creates this record, on occasion the DOI still has not been activated by the EU Bookshop. If you find the source url hyperlink does not work please use the alternative location hyperlink listed as a related url.As the euro area business cycle matures, will the interaction between monetary policy and supervisory policy become potentially controversial? How to avoid situations where controversy over the actions of one policy dents the credibility of the other and/or the institutions involved? And how to best exploit the positive synergies stemming from the close interaction of monetary and macro-prudential policies, especially at times of financial market turbulence?

The notes in this compilation prepared by key monetary experts address these issues. The notes have been requested by the Committee on Economic and Monetary Affairs (ECON) of the European Parliament as an input for the June 2015 session of the Monetary Dialogue between the Members of the ECON Committee and the President of the ECB.

European Parliament: Directorate-General for Internal Policies of the Union: Publications available via the EU Bookshop http://bookshop.europa.eu/en/directorate-general-for-internal-policies-of-the-union-cbf.cKABstF7wAAAEjwYYY4e5K/

European Parliament: European Parliamentary Research Service: In-Depth Analysis, September 2015 (published 2016): Interaction between Monetary Policy and Bank Regulation http://www.europarl.europa.eu/RegData/etudes/IDAN/2015/563458/IPOL_IDA(2015)563458_EN.pdf

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