Can I make monetary policy respond to the total amount of loans?

[jpfeifer]

Additional components appearing in monetary policy rule

I don’t really know where the question is going. Let’s try to structure things a bit. In pure model building terms, you can put everything you want into a feedback rule. The only limit is your imagination. When it comes to the describing actual policies/central bank behavior, things will be different, because central banks may care about very specific things (which will typically differ across countries and time) Things are again different when doing a normative analysis, i.e. whether feedback…

seems relevant.