Macroprudential policy and practice

Table of Contents Introduction 1. The macroeconomics of macroprudential policies Philip Turner 2. A liquidity-based approach to macroprudential policy Jean-Pierre Landau 3. Financial intermediation and monetary and macroprudential policies Stefano Neri 4. The new art of central banking Jagjit S. Chadha 5. The macroprudential countercyclical capital buffer in Basel III: implications for monetary policy José A. Carrasco-Gallego and Margarita Rubio 6. On the use of monetary and macroprudential policies for small open economies F. Gulcin Ozkan and D. Filiz Unsal 7. Capital flows and macroprudential policy: a framework for emerging Asia Matteo F. Ghilardi and Shanaka J. Peiris 8. Macroprudential policy in a globalised world Dennis Reinhardt and Rhiannon Sowerbutts 9. Systemic risk of European banks: regulators and markets Maarten R. C. van Oordt and Chen Zhou 10. Macroprudential tools of systemic risk analysis Marcin Łupiński 11. When is macroprudential policy effective? Chris McDonald 12. Macroprudential policy: practice ahead of theory and a clear remit Richard Barwell Index.

Macroprudential policy is perhaps the most important new development in central bank policymaking circles since the global financial crisis, and reliance on such policies has continued to spread. The crisis, which showed the limits of conventional monetary policy as a tool to deal with financial stability, forced a wide-ranging rethink of economic policies, their interactions and their repercussions. It has led to new forms of intervention, of regulation and of supervisory practice. Macroprudential regulation is now one of the most important topics in modern macroeconomics, because it concerns measures put in place to reduce the risks and costs of the instability caused by financial crises. Written by senior figures from the worlds of academia and banking, this volume combines theoretical approaches with hard evidence of the policy's achievements in many countries. It is the first in-depth analysis of macroprudential instruments for policymakers, banks and economists. This book is aimed at both policymakers and academics Puts together key aspects of macroprudential policy Helps readers to understand how macroprudential and monetary policies work together