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The Use and Effectiveness of Macroprudential Policies: New Evidence
Author:
Mr. Eugenio M Cerutti
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Mr. Stijn Claessens
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Mr. Luc Laeven
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Series:
IMF Working Papers
Volume/Issue:
Volume 2015: Issue 061
Language:
English
Publication Date:
17 Mar 2015
DOI:
https://doi.org/10.5089/9781498321051.001
ISBN:
9781498321051
ISSN:
1018-5941
Pages:
43
Keywords:
WP; open economy; foreign currency; exchange rate; standard deviation; capital account; credit growth; dependent variable; regression result; Macroprudential policies; Effectiveness; Procyclicality; Financial cycles; prudential policy; MPI index; Macroprudential policy; Credit; Housing prices; Emerging and frontier financial markets; Central bank policy rate; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Using a recent IMF survey and expanding on previous studies, we document the use of macroprudential policies for 119 countries over the 2000-13 period, covering many instruments. Emerging economies use macroprudential policies most frequently, especially foreign exchange related ones, while advanced countries use borrower-based policies more. Usage is generally associated with lower growth in credit, notably in household credit. Effects are less in financially more developed and open economies, however, and usage comes with greater cross-border borrowing, suggesting some avoidance. And while macroprudential policies can help manage financial cycles, they work less well in busts.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund