Comparative Assessment of Macroprudential Policies

56 Pages Posted: 12 Jun 2015

See all articles by Valentina Bruno

Valentina Bruno

American University - Department of Finance and Real Estate

Ilhyock Shim

Bank for International Settlements (BIS)

Hyun Song Shin

Bank for International Settlements (BIS)

Date Written: June 2015

Abstract

This paper provides a comparative assessment of the effectiveness of macroprudential policies in 12 Asia-Pacific economies, using comprehensive databases of domestic macroprudential policies and capital flow management (CFM) policies. We find that banking sector CFM polices and bond market CFM policies are effective in slowing down banking inflows and bond inflows, respectively. We also find some evidence of spillover effects of these policies. Finally, regarding the interaction of monetary policy and macroprudential policies, our empirical findings suggest that macroprudential policies are more successful when they complement monetary policy by reinforcing monetary tightening, than when they act in opposite directions.

Keywords: macroprudential policy, capital flow management policy, interest rate policy, complementarity, Asia-Pacific

JEL Classification: E52, E58, F32, F34, G28

Suggested Citation

Bruno, Valentina Giulia and Shim, Ilhyock and Shin, Hyun Song, Comparative Assessment of Macroprudential Policies (June 2015). BIS Working Paper No. 502. Available at SSRN: https://ssrn.com/abstract=2617286

Valentina Giulia Bruno (Contact Author)

American University - Department of Finance and Real Estate ( email )

Kogod School of Business
4400 Massachusetts Ave., N.W.
Washington, DC 20016-8044
United States

HOME PAGE: http://www.american.edu/kogod/faculty/bruno.cfm

Ilhyock Shim

Bank for International Settlements (BIS) ( email )

78F, Two International Finance Centre
8 Finance Street, Central
Hong Kong, n/a n/a
Hong Kong

HOME PAGE: http://www.bis.org/author/ilhyock_shim.htm

Hyun Song Shin

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

HOME PAGE: http://www.bis.org/author/hyun_song_shin.htm

Register to save articles to
your library

Register

Paper statistics

Downloads
117
Abstract Views
904
rank
239,582
PlumX Metrics