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Macroprudential policy in a currency union

Author

Listed:
  • Claudia M. Buch

    (Deutsche Bundesbank)

  • Benjamin Weigert

    (Deutsche Bundesbank)

Abstract

The past 20 years in Europe have seen large swings in real and financial markets, and sudden stops of capital flows have exposed the fault lines of the European financial architecture. While the pre-crisis financial architecture centered around mechanisms to contain borrowing by the public-sector, this paper argues that incentives for the private sector to engage in excessive borrowing had not been taken into account adequately. Macroprudential policy is a core element of the post-crisis reform agenda, and it plays a particularly important role in the European monetary union.

Suggested Citation

  • Claudia M. Buch & Benjamin Weigert, 2019. "Macroprudential policy in a currency union," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(1), pages 23-33, February.
    • Handle: RePEc:spr:weltar:v:155:y:2019:i:1:d:10.1007_s10290-018-0332-6
    DOI: 10.1007/s10290-018-0332-6
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    References listed on IDEAS

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    9. Jay C. Shambaugh, 2012. "The Euro's Three Crises," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 43(1 (Spring), pages 157-231.
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    Cited by:

    1. Gupta, Ankit & Davis, Matthew & Kumar, Amit, 2021. "An integrated assessment framework for the decarbonization of the electricity generation sector," Applied Energy, Elsevier, vol. 288(C).
    2. Agénor, Pierre-Richard & Jackson, Timothy & Jia, Pengfei, 2021. "Macroprudential policy coordination in a currency union," European Economic Review, Elsevier, vol. 137(C).
    3. Laura Alfaro & Paul R. Bergin, 2019. "Introduction to: the euro at twenty," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(1), pages 1-3, February.
    4. Matthieu Bussière & Jin Cao & Jakob de Haan & Robert Hills & Simon Lloyd & Baptiste Meunier & Justine Pedrono & Dennis Reinhardt & Sonalika Sinha & Rhiannon Sowerbutts & Konstantin Styrin, 2021. "The interaction between macroprudential policy and monetary policy: Overview," Review of International Economics, Wiley Blackwell, vol. 29(1), pages 1-19, February.

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    More about this item

    Keywords

    Monetary union; EMU; Macroprudential policy; Monetary policy;
    All these keywords.

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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