Macroprudential Policy : What Instruments and How to Use them? Lessons From Country Experiences

Author/Editor:

International Monetary Fund

Publication Date:

October 1, 2011

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

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 provides the most comprehensive empirical study of the effectiveness of macroprudential instruments to date. Using data from 49 countries, the paper evaluates the effectiveness of macroprudential instruments in reducing systemic risk over time and across institutions and markets. The analysis suggests that many of the most frequently used instruments are effective in reducing pro-cyclicality and the effectiveness is sensitive to the type of shock facing the financial sector. Based on these findings, the paper identifies conditions under which macroprudential policy is most likely to be effective, as well as conditions under which it may have little impact.

Series:

Working Paper No. 11/238

Subject:

English

Publication Date:

October 1, 2011

ISBN/ISSN:

9781463922603/1018-5941

Stock No:

WPIEA2011238

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

85

Please address any questions about this title to publications@imf.org