Coordination Effects and Optimal Policy Choices of Macroprudential Policy and Monetary Policy

Table 2

Welfare changes of the optimal combination of LTV macroprudential rules and monetary policy rules.

	Parameters and variables	Case one	Case two	Case three
Taylor rules		0.8	0.8	0.8
		0.7	0.7	0.7
		0	0.3	0.3
		0	0	0.1
LTV rules		0.6	0.6	0.53
		0	0	0
Patient households		−0.6274	−0.2203	−1.3826
Impatient households		0.8442	9.9658	6.7444
Bankers		3.9934	12.0796	16.7064
Total social welfare		0.2955	1.2813	1.4093