Macroprudential Policies and The Covid-19 Pandemic: Risks and Challenges For Emerging Markets

Sebastian Edwards

No 29441, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper deals with COVID and macroprudential regulations in emerging markets. I document the build-up of a sturdy macroprudential structure during 2009-2019, and the relaxation of regulations in 2020-2021, as part of the effort to deal with the sanitary emergency. I show that in every country, regulatory forbearance played a key role in the response to COVID. I discuss capital controls as macroprudential instruments. I argue that rebuilding the macroprudential fabric is important to reduce the costs of future systemic shocks. I maintain that post-COVID regulations should incorporate the risks associated with digital currencies.

JEL-codes: E31 E52 E58 F3 F41 (search for similar items in EconPapers)
Date: 2021-10
New Economics Papers: this item is included in nep-ban, nep-cba, nep-cwa, nep-ifn, nep-mac, nep-ore and nep-rmg
Note: IFM
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Citations: View citations in EconPapers (6)

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