Externalities and Macroprudential Policy
Staff Discussion Notes, June 7, 2012
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- Externalities and Macroprudential Policy
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Bibliographic details
- Authors: Gianni De Nicolo, Giovanni Favara, Lev Ratnovski
- Published: June 7, 2012
- Series: Staff Discussion Notes
- DOI: https://doi.org/10.5089/9781475504095.006
Overview
- Title: Externalities and Macroprudential Policy
- Authors: Gianni De Nicolo, Giovanni Favara, Lev Ratnovski
- Publication date: June 7, 2012
- Format indicated on page: Staff Discussion Notes
- Summary statement from the note:
- "This note overviews macroprudential policy options that have been proposed to address the systemic risks experienced during the recent financial crisis. It contributes to the policy debate by providing a taxonomy of macroprudential policies in terms of the specific negative externalities in the financial system that these policies are meant to address, and discusses their interrelations and some key implementation issues."
Key contributions and taxonomy
- Provides a taxonomy of macroprudential policies mapped to the specific negative externalities they are designed to address.
- Discusses interrelations among macroprudential instruments.
- Highlights key implementation issues for macroprudential policy.
Major themes and focus areas
- Asset and liability management
- Asset liquidity
- Banking and bank assets
- Bank risk strategy
- Capital requirement
- Financial contagion
- Financial crises
- Financial sector policy and analysis
- Macroprudential policy
- Systemic risk
Keywords (as listed)
- Asset liquidity, bank, bank assets, bank risk strategy, capital requirement, Externalities, externality, Financial contagion, macroprudential policy, market failure, proxy externality, prudential regulation, regulation, SDN, systemic risk
Access and formats (as indicated on the page)
- Landing page indicates availability: "Download PDF" and "More Formats on IMF eLibrary"
- Citation example provided: Chicago format citation including DOI and an accessed date in the preview citation
Implementation issues and policy considerations (as emphasized)
- Mapping policies to the negative externalities they address is central to effective macroprudential design.
- Consideration of how different macroprudential tools interact is necessary for coherent policy.
- Practical implementation challenges are discussed alongside the taxonomy.
Staff Discussion Notes No. 2012/005