Benchmarking Macroprudential Policies: An Initial Assessment

38 Pages Posted: 29 Sep 2016

See all articles by Domenico Lombardi

Domenico Lombardi

CIGI

Pierre L. Siklos

Wilfrid Laurier University - School of Business & Economics; Balsillie school of international affairs

Date Written: September 28, 2016

Abstract

In recognition of the severe consequences of the recent international financial crisis, the topic of macroprudential policy has elicited considerable research effort. The present study constructs, for 46 economies around the globe, an index of the capacity to deploy macroprudential policies. Building on elements that have been the subject of recent research, we develop an index that aims to represent the essence of what constitutes a macroprudential regime. Specifically, the index quantifies: (1) how existing macroprudential frameworks are organized; and (2) how far a particular jurisdiction is from reaching the goals established by the Group of Twenty (G20) and the Financial Stability Board (FSB). The latter is a benchmark that has not been considered in the burgeoning literature that seeks to quantify the role of macroprudential policies.

Keywords: Central Banks, Financial Stability Board, Index, Macroprudential Policy, Policy Framework

JEL Classification: E32, E42, E58, E02, F02

Suggested Citation

Lombardi, Domenico and Siklos, Pierre L., Benchmarking Macroprudential Policies: An Initial Assessment (September 28, 2016). CAMA Working Paper No. 60/2016 . Available at SSRN: https://ssrn.com/abstract=2845097 or http://dx.doi.org/10.2139/ssrn.2845097

Domenico Lombardi

CIGI ( email )

67 Erb Street West
Waterloo, Ontario N2L 6C2
Canada

HOME PAGE: http://www.domenicolombardi.org

Pierre L. Siklos (Contact Author)

Wilfrid Laurier University - School of Business & Economics ( email )

Department of Economics
75 University Avenue W.
Waterloo, Ontario N2L 3C5
Canada
519-884-0710 Ext.. 3491 (Phone)

HOME PAGE: http://pierrelsiklos.com

Balsillie school of international affairs ( email )

67 Erb Street West
Waterloo, ON N2L 6C2
Canada

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
25
Abstract Views
272
PlumX Metrics