Macroprudential Frameworks, Implementation and Relationship with Other Policies

374 Pages Posted: 24 Jan 2018

Date Written: December 2017

Abstract

Papers in this volume were prepared for a meeting of senior officials from central banks held at the Bank for International Settlements.

Emerging market central banks have a long history of using macroprudential instruments. But while most central banks carry a heavy responsibility for financial stability, legal objectives are generally vague, do not define success or failure, and say nothing about competing objectives. This complicates both accountability and the communication of macroprudential decisions.

Participants drew several lessons from their experience with implementing macroprudential instruments. First, macroprudential authorities need to act early if they want to address systemic risk effectively. Second, building buffers or shifting the composition of credit is easier than managing the cycle. Third, macroprudential measures tend to be better at constraining booms than at dampening busts. Fourth, although macroprudential tools could, in principle, be targeted very precisely, circumvention by lenders and borrowers require more broad-based approaches. Fifth, macroprudential measures and monetary policy can reinforce each other when used in the same direction. Sixth, the jury is still out whether macroprudential instruments could be used effectively to address regional disparities within economies.

This volume collects the background papers of a meeting of Deputy Governors of central banks from emerging market economies to exchange their experience with designing macroprudential frameworks and implementing macroprudential instruments.

While the full publication can be downloaded using the above link, individual contributions are available separately.

Macroprudential Frameworks, Implementation and Relationship with Other Policies – Overview

Macroprudential Frameworks: Objectives, Decisions and Policy Interactions

Macroprudential Frameworks: Implementation and Effectiveness

Macroprudential Frameworks: Communication

Macroprudential Frameworks: Cross-Border Issues

Contributed Papers:

Macroprudential Policy Framework, Implementation and Relationships with Other Policies

Macroprudential Policy in Brazil

Macroeconomic and Financial Volatility and Macroprudential Policies in Chile

Macroprudential Goals, Implementation and Crossborder Communication

The Macroprudential Policy Framework in Colombia

Should Monetary Policy Pay Attention to House Prices? The Czech National Bank's Approach

Hong Kong’s Property Market and Macroprudential Measures

Regionally-Differentiated Debt Cap Rules: A Hungarian Perspective

Macroprudential Frameworks, Implementation, and Relationship with Other Policies

Indonesia: The Macroprudential Framework and the Central Bank’s Policy Mix

Assessing the Impact of Macroprudential Tools: The Case of Israel

Macroprudential Frameworks, Implementation and Relationship with Other Policies in Korea

Macroprudential Frameworks: Implementation, and Relationship with Other Policies – Malaysia

On the Relationship between Macroprudential Policy and Other Policies

Implementation of Macroprudential Policy in Peru

Macroprudential Frameworks, Implementation, and Communication Strategies – The Philippines

Institutional and Operational Aspects of Macroprudential Policy in Central and Eastern European EU Member States

The Macroprudential Policy Framework in Russia

Macroprudential Policies: A Singapore Case Study

Macroprudential Frameworks, Implementation and Relationships with Other Policies

Macroprudential Framework - The Case of Thailand

Financial Stability and Macroprudential Policy in Turkey

JEL Classification: E51, E58, G21

Suggested Citation

Settlements, Bank for International, Macroprudential Frameworks, Implementation and Relationship with Other Policies (December 2017). BIS Paper No. 94, Available at SSRN: https://ssrn.com/abstract=3101163

Bank for International Settlements (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4051
Switzerland

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
64
Abstract Views
506
rank
405,001
PlumX Metrics