The Macroprudential Framework: Policy Responsiveness and Institutional Arrangements

 
Author/Editor: Cheng Hoon Lim ; Ivo Krznar ; Fabian Lipinsky ; Akira Otani ; Xiaoyong Wu
 
Publication Date: July 17, 2013
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper gauges if, and how, institutional arrangements are correlated with the use of macroprudential policy instruments. Using data from 39 countries, the paper evaluates policy response time in various types of institutional arrangements for macroprudential policy and finds that the macroprudential framework that gives the central bank an important role is associated with more timely use of macroprudential policy instruments. Policymakers may also tend to use macroprudential instruments more quickly if the ability to conduct monetary policy is somehow constrained. This finding points to the importance of coordination between macroprudential and monetary policy.
 
Series: Working Paper No. 13/166
Subject(s): Macroprudential Policy | Financial stability | Central banks | Monetary policy | Central bank role

 
English
Publication Date: July 17, 2013
ISBN/ISSN: 9781484377819/2227-8885 Format: Paper
Stock No: WPIEA2013166 Pages: 40
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