IMF Working Papers

The Use and Effectiveness of Macroprudential Policies: New Evidence

By Eugenio M Cerutti, Stijn Claessens, Luc Laeven

March 17, 2015

Download PDF

Preview Citation

Format: Chicago

Eugenio M Cerutti, Stijn Claessens, and Luc Laeven. The Use and Effectiveness of Macroprudential Policies: New Evidence, (USA: International Monetary Fund, 2015) accessed September 24, 2024
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

Using a recent IMF survey and expanding on previous studies, we document the use of macroprudential policies for 119 countries over the 2000-13 period, covering many instruments. Emerging economies use macroprudential policies most frequently, especially foreign exchange related ones, while advanced countries use borrower-based policies more. Usage is generally associated with lower growth in credit, notably in household credit. Effects are less in financially more developed and open economies, however, and usage comes with greater cross-border borrowing, suggesting some avoidance. And while macroprudential policies can help manage financial cycles, they work less well in busts.

Subject: Central bank policy rate, Credit, Emerging and frontier financial markets, Financial markets, Financial sector policy and analysis, Financial services, Housing prices, Macroprudential policy, Money, Prices

Keywords: Capital account, Central bank policy rate, Credit, Credit growth, Dependent variable, Effectiveness, Emerging and frontier financial markets, Exchange rate, Financial cycles, Foreign currency, Global, Housing prices, Macroprudential policies, Macroprudential policy, MPI index, Open economy, Procyclicality, Prudential policy, Regression result, Standard deviation, WP

Publication Details

  • Pages:

    43

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2015/061

  • Stock No:

    WPIEA2015061

  • ISBN:

    9781498321051

  • ISSN:

    1018-5941

Supplemental Resources

You May Also Be Interested In...

Navigating External Shocks in Southeast Asia's Emerging Markets: Key Lessons and Challenges in Applying the IMF’s Integrated Policy Framework

September 23, 2024

Chinese Banks and Their EMDE Borrowers: Have Their Relationships Changed in Times of Geoeconomic Fragmentation?

September 23, 2024

Togo: Selected Issues

September 23, 2024

Systemic Implications of Financial Inclusion

September 20, 2024