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Macroprudential Supervision: From Theory to Policy.
- Source :
- National Institute Economic Review; Feb2016, Vol. 235, pR50-R62, 13p
- Publication Year :
- 2016
-
Abstract
- Financial supervision focuses on the aggregate (macroprudential) in addition to the individual (microprudential). But an agreed framework for measuring and addressing financial imbalances is lacking. We propose a holistic approach for the financial system as a whole, beyond banking. Building on our model of financial amplification, the financial cycle is the key variable for measuring financial imbalances. The cycle can be curbed by leverage restrictions that might vary across countries. We make concrete policy proposals for the design of macroprudential instruments to simplify the current framework and make it more consistent. [ABSTRACT FROM AUTHOR]
- Subjects :
- ECONOMIC policy
FINANCIAL management
SUPERVISION
MACROECONOMICS
BANKING industry
Subjects
Details
- Language :
- English
- ISSN :
- 00279501
- Volume :
- 235
- Database :
- Complementary Index
- Journal :
- National Institute Economic Review
- Publication Type :
- Academic Journal
- Accession number :
- 112829002
- Full Text :
- https://doi.org/10.1177/002795011623500115