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
The Macroprudential Policy Framework in Russia
Macroprudential Policies: A Singapore Case Study
Macroprudential Frameworks, Implementation and Relationships with Other Policies
JEL Classification: E51, E58, G21
Suggested Citation: Suggested Citation