6. Macroprudential Policy and the Financial Cycle: Some Stylized Facts and Policy Suggestions
Author: Claudio Borio
Language:
English
Keywords:
BOOK; monetary policy; price; inflation targeting; central bank; capital; inflation expectation; capital control; inflation-targeting framework; house price; economic system; Exchange rate arrangements; Capital controls; Capital flows; Capital inflows; Global; Europe; Asia and Pacific; Africa; Eastern Europe; real property price gap; equity price; financing constraint; NBER recession; balance sheet recession; Financial cycles; Economic recession; Business cycles; Macroprudential policy; Land prices

Abstract

This chapter seeks to provide some context for the macroprudential policy debate. The objective is to explore what I consider the major source of systemic risk, namely, the financial cycle and its link with systemic financial (banking) crises and the far better known business cycle. I would like to highlight a few stylized facts and then turn to the implications for macroprudential policy.

Within Same Series

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Cover What Have We Learned? Macroeconomic Policy After the Crisis
What Have We Learned? Macroeconomic Policy After the Crisis
Author: International Monetary Fund
ISBN:
9780262027342
Publication Date:
20 May 2014
Publisher:
The MIT Press
DOI:
https://doi.org/10.5089/9780262027342.071
Pages:
369