Macroprudential Policies in EMEs: Theory and Practice
Bank for International Settlements (BIS)
January 1, 2012
BIS Paper No. 62M
This paper examines the macroeconomic and microeconomic dimensions of systemic risk. The design of practical macroprudential policies to address such risks is complex. Issues to be tackled include: (a) statistics to accurately measure currency and maturity mismatches (which usually lie at the heart of EME crises) and the degree of leverage; (b) clarification of macroeconomic and financial system dynamics; (c) the selection of policy tools best suited for particular countries; and (d) quantification of the many dimensions of the “cycle”. Coordination between macroprudential and monetary policy will raise a number of thorny issues.
Full publication: Financial Sector Regulation for Growth, Equity and Stability:
Number of Pages in PDF File: 15
Keywords: Macroprudential policies, externalities, monetary policy, regulation of capital flows
JEL Classification: E44, E58, F36, G28Accepted Paper Series
Date posted: April 11, 2012
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