Macroprudential Policies in a Global Perspective

Olivier Jeanne

No 14-E-01, IMES Discussion Paper Series from Institute for Monetary and Economic Studies, Bank of Japan

Abstract: This paper analyzes the case for the international coordination of macroprudential policies in the context of a simple theoretical framework. Both domestic macroprudential policies and prudential capital controls have international spillovers through their impact on capital flows. The uncoordinated use of macroprudential policies may lead to a "capital war" that depresses global interest rates. International coordination of macroprudential policies is not warranted, however, unless there is unemployment in some countries. There is scope for Pareto-improving international policy coordination when one part of the world is in a liquidity trap while the rest of the world accumulates reserves for prudential reasons.

Keywords: Macroprudential Policy; Capital Flows; Capital Controls; International Reserves; International Coordination; Liquidity Trap (search for similar items in EconPapers)
JEL-codes: F36 F41 F42 (search for similar items in EconPapers)
Date: 2014-02
New Economics Papers: this item is included in nep-cba, nep-mon and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (44)

Downloads: (external link)
http://www.imes.boj.or.jp/research/papers/english/14-E-01.pdf (application/pdf)

Related works:
Working Paper: Macroprudential Policies in a Global Perspective (2014)
Working Paper: Macroprudential Policies in a Global Perspective (2014)
Journal Article: Macroprudential policies in a global perspective (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ime:imedps:14-e-01

Access Statistics for this paper

More papers in IMES Discussion Paper Series from Institute for Monetary and Economic Studies, Bank of Japan Contact information at EDIRC.
Bibliographic data for series maintained by Kinken ().