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Benchmarking macroprudential policies: An initial assessment

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  • Domenico Lombardi
  • Pierre L. Siklos

Abstract

In recognition of the severe consequences of the recent international financial crisis, the topic of macroprudential policy has elicited considerable research effort. The present study constructs, for 46 economies around the globe, an index of the capacity to deploy macroprudential policies. Building on elements that have been the subject of recent research, we develop an index that aims to represent the essence of what constitutes a macroprudential regime. Specifically, the index quantifies: (1) how existing macroprudential frameworks are organized; and (2) how far a particular jurisdiction is from reaching the goals established by the Group of Twenty (G20) and the Financial Stability Board (FSB). The latter is a benchmark that has not been considered in the burgeoning literature that seeks to quantify the role of macroprudential policies.

Suggested Citation

  • Domenico Lombardi & Pierre L. Siklos, 2016. "Benchmarking macroprudential policies: An initial assessment," CAMA Working Papers 2016-60, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  • Handle: RePEc:een:camaaa:2016-60
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    Cited by:

    1. Levieuge, G. & Lucotte, Y. & Pradines-Jobet, F., 2019. "Central banks’ preferences and banking sector vulnerability," Journal of Financial Stability, Elsevier, vol. 40(C), pages 110-131.
    2. Pierre L. Siklos, 2018. "Has Monetary Policy Changed? How the Crisis Shifted the Ground Under Central Banks," Working Paper series 18-10, Rimini Centre for Economic Analysis.
    3. Hylton Hollander & Dawie van Lill, 2019. "A Review of the South African Reserve Bank’s Financial Stability Policies," Working Papers 11/2019, Stellenbosch University, Department of Economics.
    4. repec:rba:rbaacv:acv2017-06 is not listed on IDEAS
    5. repec:spr:decisn:v:46:y:2019:i:1:d:10.1007_s40622-019-00203-y is not listed on IDEAS
    6. Rochelle M. Edge & J. Nellie Liang, 2019. "New Financial Stability Governance Structures and Central Banks," Finance and Economics Discussion Series 2019-019, Board of Governors of the Federal Reserve System (US).
    7. Jiří Rajl, 2016. "Macroprudential and Financial Regulation," Český finanční a účetní časopis, University of Economics, Prague, vol. 2016(4), pages 63-82.

    More about this item

    Keywords

    Central banks; Financial Stability Board; index; macroprudential policy; policy framework;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • F02 - International Economics - - General - - - International Economic Order and Integration

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