The Use and Effectiveness of Macroprudential Policies: New Evidence
IMF Working Papers, March 17, 2015
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- The Use and Effectiveness of Macroprudential Policies: New Evidence
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Bibliographic details
- Authors: Eugenio M Cerutti, Stijn Claessens, Luc Laeven
- Published: March 17, 2015
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781498321051.001
Study scope and data
- Authors: Eugenio M Cerutti, Stijn Claessens, Luc Laeven
- Publication: IMF Working Papers; Working Paper No. 2015/061
- Date: March 17, 2015
- Coverage: 119 countries over the 2000-13 period
- Pages: 43
- Volume: 2015; Issue: 061
- DOI: https://doi.org/10.5089/9781498321051.001
- ISBN: 9781498321051
- ISSN: 1018-5941
Main findings on usage and types of instruments
- Emerging economies use macroprudential policies most frequently, especially foreign exchange related instruments.
- Advanced countries use borrower-based policies more frequently.
- The study documents usage across many instruments based on a recent IMF survey and expands on previous studies.
Effects on credit and financial cycles
- Usage is generally associated with lower growth in credit, notably in household credit.
- Effects are smaller in financially more developed economies and in more open economies.
- Usage is associated with greater cross-border borrowing, suggesting some avoidance of domestic measures.
- Macroprudential policies can help manage financial cycles, but they work less well in busts.
Subject areas and keywords
- 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
IMF Working Paper No. 2015/061 (Eugenio M Cerutti, Stijn Claessens, Luc Laeven), March 17, 2015.