## Effects of Macroprudential Policy: Evidence from Over 6,000 Estimates

_IMF Working Papers, May 22, 2020_

## Source details

**Canonical URL:** [Effects of Macroprudential Policy: Evidence from Over 6,000 Estimates](https://www.imf.org/en/publications/wp/issues/2020/05/22/effects-of-macroprudential-policy-evidence-from-over-6-000-estimates-49440)

## Other formats

- [Markdown version](/en/publications/wp/issues/2020/05/22/effects-of-macroprudential-policy-evidence-from-over-6-000-estimates-49440/index.md)
- [Structured JSON version](/en/publications/wp/issues/2020/05/22/effects-of-macroprudential-policy-evidence-from-over-6-000-estimates-49440/index.json)
- [Bundle manifest](/en/publications/wp/issues/2020/05/22/effects-of-macroprudential-policy-evidence-from-over-6-000-estimates-49440/bundle-manifest.json)

## Bibliographic details
- Authors: Juliana Dutra Araujo, Manasa Patnam, Adina Popescu, Fabian Valencia, Weijia Yao
- Published: May 22, 2020
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513545400.001

---

### Overview
- Authors: Juliana Dutra Araujo, Manasa Patnam, Adina Popescu, Fabian Valencia, Weijia Yao
- Publication date: May 22, 2020
- Paper builds a novel database drawing from 58 empirical studies, comprising over 6,000 results on a wide range of instruments and outcome variables.
- Database contains information on statistical significance, standardized magnitudes, and other characteristics of the estimates.
- Analysis uses meta-analysis techniques to estimate average effects.

### Key findings
- Statistically significant effects on credit, with considerable heterogeneity across instruments.
- Weaker and more imprecise effects on house prices.
- Quantitatively stronger effects:
  - in emerging markets, and
  - among studies using micro-level data.
- Statistically significant evidence of leakages and spillovers.
- Relatively stronger impacts for tightening than loosening actions.
- Negative effects on economic activity in the near term.

### Methodology and data scope
- Source base: 58 empirical studies.
- Total estimates compiled: over 6,000 results.
- Information captured: statistical significance, standardized magnitudes, and other characteristics of estimates.
- Analytical approach: meta-analysis techniques to estimate average effects across studies.

### Policy implications and interpretations
- Macroprudential instruments can materially affect credit outcomes, but effectiveness varies substantially by instrument.
- Limited and imprecise impacts on house prices suggest caution in relying on macroprudential tools alone to stabilize housing markets.
- Stronger measured effects in emerging markets and in micro-data studies indicate context and data granularity matter for policy evaluation.
- Evidence of leakages and spillovers underscores the need for cross-border and cross-sectoral coordination when designing macroprudential measures.
- Tighter macroprudential stances tend to produce stronger immediate impacts than loosening, but may induce near-term negative effects on economic activity, implying trade-offs between financial stability and short-term growth.

### Publication metadata (for reference within the content)
- Pages: 48
- Volume: 2020
- Issue: 067
- Series: Working Paper No. 2020/067
- DOI: https://doi.org/10.5089/9781513545400.001
- Stock No: WPIEA2020067
- ISBN: 9781513545400
- ISSN: 1018-5941

*Source: "Effects of Macroprudential Policy: Evidence from Over 6,000 Estimates", IMF Working Papers, May 22, 2020.*

---

## Content in this bundle

- **Working Paper**
  - [Working Paper (Markdown version)](/-/media/files/publications/wp/2020/english/wpiea2020067-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Working Paper (PDF)](/-/media/files/publications/wp/2020/english/wpiea2020067-print-pdf.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2020/05/22/effects-of-macroprudential-policy-evidence-from-over-6-000-estimates-49440_