The use and effectiveness of macroprudential policies: New evidence

Eugenio Cerutti, Stijn Claessens () and Luc Laeven

Journal of Financial Stability, 2017, vol. 28, issue C, 203-224

Abstract: Using a recent IMF survey and expanding on previous studies, we document the use of macroprudential policies for 119 countries over the 2000–2013 period, covering many instruments. Emerging economies use macroprudential policies most frequently; especially foreign exchange related ones while advanced countries use borrower-based policies more. Usage is generally associated with lower growth in credit, notably in household credit. Effects are less in financially more developed and open economies, however, and usage comes with greater cross-border borrowing, suggesting some avoidance. And while macroprudential policies can help manage financial cycles, they work less well in busts.

Keywords: Macroprudential policies; Effectiveness; Procyclicality; Financial cycles; Boom and busts (search for similar items in EconPapers)
JEL-codes: E43 E58 G18 G28 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (608)

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Working Paper: The Use and Effectiveness of Macroprudential Policies: New Evidence (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finsta:v:28:y:2017:i:c:p:203-224

DOI: 10.1016/j.jfs.2015.10.004

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