{
  "title": "Capital Flows, Financial Intermediation and Macroprudential Policies",
  "publication": "IMF Working Papers, August 21, 2014",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/capital-flows-financial-intermediation-and-macroprudential-policies-41858",
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  "summary": "This paper develops an open-economy DSGE model with an optimizing banking sector to assess the role of capital flows, macro-financial linkages, and macroprudential policies in emerging Asia. The key result is that macro-prudential measures can usefully complement monetary policy.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- This paper develops an open-economy DSGE model with an optimizing banking sector to assess the role of capital flows, macro-financial linkages, and macroprudential policies in emerging Asia.\n- Authors: Matteo Ghilardi, Shanaka J Peiris.\n- Publication date: August 21, 2014."
    },
    {
      "heading": "Key findings",
      "content": "- Macro-prudential measures can usefully complement monetary policy.\n- Countercyclical macroprudential polices can help reduce macroeconomic volatility and enhance welfare.\n- Capital flows and financial stability are important for business cycle fluctuations.\n- Supply side financial accelerator effects play a role in the amplification and propagation of shocks."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Use countercyclical macroprudential policies alongside monetary policy to:\n  - Reduce macroeconomic volatility.\n  - Enhance welfare.\n- Recognize the interaction between capital flows and financial stability when designing policy responses to business cycle shocks.\n- Account for supply side financial accelerator effects in macro-financial policy frameworks."
    },
    {
      "heading": "Model and scope",
      "content": "- Model type: open-economy DSGE model with an optimizing banking sector.\n- Geographic focus: emerging Asia.\n- Analytical focus: capital flows, macro-financial linkages, macroprudential policies, propagation and amplification of shocks via financial channels."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Balance of payments; Banking; Capital adequacy requirements; Capital flows; Capital inflows; Credit; Financial regulation and supervision; Financial sector policy and analysis; Macroprudential policy; Money.\n- Keywords: Asia and Pacific; asset price shock; bank capital shock; Capital adequacy requirements; Capital flows; Capital inflows; capital producer; capital regulation; capital requirement; countercyclical capital rule; Credit; Financial Frictions; Global; Macroprudential policy; Monetary Policy; WP.\n\n---\n\n Content in this bundle\n\n- wp14157\n  - wp14157 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp14157 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/capital-flows-financial-intermediation-and-macroprudential-policies-41858"
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    "Authors: Matteo Ghilardi, Shanaka J Peiris",
    "Published: August 21, 2014",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781498365659.001",
    "This paper develops an open-economy DSGE model with an optimizing banking sector to assess the role of capital flows, macro-financial linkages, and macroprudential policies in emerging Asia.",
    "Authors: Matteo Ghilardi, Shanaka J Peiris.",
    "Publication date: August 21, 2014.",
    "Macro-prudential measures can usefully complement monetary policy.",
    "Countercyclical macroprudential polices can help reduce macroeconomic volatility and enhance welfare.",
    "Capital flows and financial stability are important for business cycle fluctuations.",
    "Supply side financial accelerator effects play a role in the amplification and propagation of shocks.",
    "Use countercyclical macroprudential policies alongside monetary policy to:",
    "Recognize the interaction between capital flows and financial stability when designing policy responses to business cycle shocks.",
    "Account for supply side financial accelerator effects in macro-financial policy frameworks.",
    "Model type: open-economy DSGE model with an optimizing banking sector.",
    "Geographic focus: emerging Asia.",
    "Analytical focus: capital flows, macro-financial linkages, macroprudential policies, propagation and amplification of shocks via financial channels.",
    "Subject: Balance of payments; Banking; Capital adequacy requirements; Capital flows; Capital inflows; Credit; Financial regulation and supervision; Financial sector policy and analysis; Macroprudential policy; Money.",
    "Keywords: Asia and Pacific; asset price shock; bank capital shock; Capital adequacy requirements; Capital flows; Capital inflows; capital producer; capital regulation; capital requirement; countercyclical capital rule; Credit; Financial Frictions; Global; Macroprudential policy; Monetary Policy; WP.",
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