The Use and Effectiveness of Macroprudential Policies

Abstract

Macroprudential policies − such as caps on loan-to-value and debt-to-income ratios, limits on credit growth and other balance sheet restrictions, (countercyclical) capital and reserve requirements and surcharges, and Pigouvian levies − have become part of the policy paradigm in emerging markets and advanced countries alike. A growing literature has documented the use of macroprudential policies across countries and analysed their effects (eg Brunnermeier, Goodhart, Crocket, Persaud and Shin (2009), CGFS (2012), IMF (2013), ESRB (2014), Galati and Moessner (2014), Freixas, Laeven and Peydró (2015) and Claessens (2015)).

Full publication: Macroprudential Policy