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My Reflections on the FPC's Strategy

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  • ANIL K KASHYAP

Abstract

I review the workings of the United Kingdom's Financial Policy Committee to illustrate the challenges of implementing macroprudential policy. I describe the committee's remit, explain my views on the channels of financial instability that the committee tries to mitigate, describe the tools the committee has its disposal and outline the principles it uses in deploying these tools. I conclude by offering some of the lessons I have learned in serving on the committee and highlighting a few challenges for macroprudential policymakers.

Suggested Citation

  • Anil K Kashyap, 2020. "My Reflections on the FPC's Strategy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 52(S1), pages 63-75, October.
    • Handle: RePEc:wly:jmoncb:v:52:y:2020:i:s1:p:63-75
    DOI: 10.1111/jmcb.12733
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    References listed on IDEAS

    as
    1. Daniel Greenwald, 2019. "Firm Debt Covenants and the Macroeconomy: The Interest Coverage Channel," 2019 Meeting Papers 520, Society for Economic Dynamics.
    2. Anil K. Kashyap & Anne Wetherilt, 2019. "Some Principles for Regulating Cyber Risk," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 482-487, May.
    3. Lang, Jan Hannes & Izzo, Cosimo & Fahr, Stephan & Ruzicka, Josef, 2019. "Anticipating the bust: a new cyclical systemic risk indicator to assess the likelihood and severity of financial crises," Occasional Paper Series 219, European Central Bank.
    4. Aikman, David & Bridges, Jonathan & Hacioglu Hoke, Sinem & O’Neill, Cian & Raja, Akash, 2019. "Credit, capital and crises: a GDP-at-Risk approach," Bank of England working papers 824, Bank of England, revised 18 Oct 2019.
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