Macroprudential policies and current account balance

Mehmet Ekinci and Gülserim Özcan

Economic Analysis and Policy, 2022, vol. 73, issue C, 768-777

Abstract: Macroprudential policies have become essential tools for policymakers to maintain financial stability. We investigate the impact of macroprudential policies on the current account balance, considering the link between external imbalances and financial stability. Building on a panel VAR model, we further document that usage of a macroprudential instrument is associated with an improvement in the current account balance. Our findings suggest that the positive impact of macroprudential policy measures on the current account balance is more substantial in the deficit countries.

Keywords: Global imbalances; Current account balance; Macroprudential policies; Panel VAR (search for similar items in EconPapers)
JEL-codes: E58 F32 G18 G28 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0313592622000030
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Macroprudential Policies and Current Account Balance (2020)
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:eee:ecanpo:v:73:y:2022:i:c:p:768-777

DOI: 10.1016/j.eap.2022.01.003

Access Statistics for this article

Economic Analysis and Policy is currently edited by Clevo Wilson

More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().