IMF paper suggests looser monetary policy to offset eurozone macro-pru policies

Denmark, Ireland, the Netherlands and Spain all experienced big house-price declines

Macro-prudential polices in four European countries that have seen sharp declines in house prices should be introduced gradually and offset by looser monetary policy to avoid their contractionary impact, according to a new International Monetary Fund (IMF) staff paper.

It also suggests restricting banks' ability to pay dividends to ensure they are able to absorb losses and write down non-performing debt.

The staff paper, published today, examines the housing markets in Denmark, Ireland, the Neth

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