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Macroprudential Policy

15 papers tracked 0 forthcoming 6 classics
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Published Classic IMF Working Papers Published Jul 2020
A Conceptual Model for the Integrated Policy Framework

Suman Basu · Emine Boz · Gita Gopinath · Francisco Roch · Filiz Unsal

Prepared as background for the IMF's Integrated Policy Framework, this paper builds a three-period small open economy in which monetary policy, capital inflow controls, sterilized foreign exchange …

Published Classic Econometrica Online 1 Sep 2016 Published Sep 2016
A Theory of Macroprudential Policies in the Presence of Nominal Rigidities

Emmanuel Farhi · Iván Werning

This paper builds a theory of macroprudential policy whose only friction is nominal rigidity in goods and labor markets, possibly combined with a constraint on monetary policy such as the zero lower …

Published Classic Journal of Financial Economics Published Apr 2021
Macroprudential FX regulations: Shifting the snowbanks of FX vulnerability?

Toni Ahnert · Kristin Forbes · Christian Friedrich · Dennis Reinhardt

Macroprudential rules on banks' foreign currency exposure do what they are meant to do -- cross-border FX borrowing by banks falls by roughly a third, and bank stock returns become markedly less …

Published Journal of Money, Credit and Banking Online 21 Aug 2023 Published Aug 2026
Monetary and Macroprudential Policy and Welfare in an Estimated Four-Agent New Keynesian Model

George J. Bratsiotis · Kasun D. Pathirage

This paper introduces a four-agent estimated New Keynesian DSGE model—comprising banked simple households, underbanked simple households, firm owners, and bank owners—to examine agent-specific and …

Published Classic Journal of International Economics Published May 2022
Spillovers at the extremes: The macroprudential stance and vulnerability to the global financial cycle

Anusha Chari · Karlye Dilts-Stedman · Kristin Forbes

A country's macroprudential stance looks irrelevant to portfolio flows on average, but that average hides the tails. Countries with tighter ex-ante regulation see larger bond and equity outflows in …

Published Classic Journal of International Economics Published Sep 2017
The real effects of capital controls: Firm-level evidence from a policy experiment

Laura Alfaro · Anusha Chari · Fabio Kanczuk

Brazil's IOF tax on foreign portfolio inflows was announced overnight and without warning, which makes it readable in stock prices. Two-day cumulative abnormal returns for listed Brazilian firms fall …

Published Classic IMF Economic Review Online 14 Feb 2020 Published Mar 2020
US or Domestic Monetary Policy: Which Matters More for Financial Stability?

Stephen G. Cecchetti · Tommaso Mancini-Griffoli · Machiko Narita · Ratna Sahay

Across nearly 1,000 listed financial firms in 21 countries, prolonged monetary easing raises leverage -- and for non-US firms, sustained easing in the United States raises leverage by more than easing …