External Shocks, the Exchange Rate and Macroprudential Policy

6 Pages Posted: 5 Oct 2016

See all articles by Philip Turner

Philip Turner

Bank for International Settlements (BIS) - Monetary and Economic Department

Date Written: September 2016

Abstract

In this session, we shall have presentations on capital flows, on credit cycles and on policies in an oil-exporting economy. By way of introduction to how these topics are linked, I would like to underline the key role of the exchange rate and explain what Bruno and Shin (2015) have called the risk-taking channel of currency appreciation. The debate on the policy response to external shocks in emerging market economies (EMEs) is often coloured by the perception that the exchange rate is not a very reliable stabilising mechanism. Events over the 2014–16 period seem to have reinforced this perception.

Full publication: Macroprudential Policy

Suggested Citation

Turner, Philip, External Shocks, the Exchange Rate and Macroprudential Policy (September 2016). BIS Paper No. 86i, Available at SSRN: https://ssrn.com/abstract=2844244

Philip Turner (Contact Author)

Bank for International Settlements (BIS) - Monetary and Economic Department ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

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