• financial stability
• banking sector
• agent-based modelling
• policy-mix
• macro-prudential regulation
• monetary policy

The purpose of this research is to investigate the interactions between monetary and macro-prudential policies in an environment characterized by financial instability. In order to do so, we have used the agent-based methodology by integrating the most recent developments in the literature on the topic and expanding a pre-existing quarterly macroeconomic model belonging to the 'Keynes meeting Schumpeter' family, with another daily financial ABM, which aims at simulating an endogenous secondary market for government bonds, using a structure referring to the works of Westerhoff (2008) and Lengnick-Wohltmann (2013). This make possible to effectively model and incorporate in our analysis various channels between the real- and the financial- sides of the economy and highlight the important role of the banking system in these phenomena, in line with the ‘macro-finance’ literature. After proposing a Triple-mandate Taylor rule that takes into account also the price of government bonds, we carry out policy exercises searching for the best policy-mix in this context.