Effects of macroprudential policy: Evidence from over 6000 estimates

Juliana Araujo, Manasa Patnam, Adina Popescu, Fabian Valencia and Weijia Yao

Journal of Banking & Finance, 2024, vol. 169, issue C

Abstract: This paper builds a novel database on the effects of macroprudential policy drawing from 58 empirical studies, comprising over 6000 results on a wide range of instruments and outcome variables. It encompasses information on statistical significance, standardized magnitudes, and other characteristics of the estimates. Using meta-analysis techniques, the paper estimates average effects to find (i) statistically significant effects on credit, but with considerable heterogeneity across instruments; (ii) weaker and more imprecise effects on house prices; (iii) quantitatively stronger effects in emerging markets and among studies using micro-level data; and (iv) statistically significant evidence of leakages and spillovers. Other findings include relatively stronger impacts for tightening than loosening actions and negative effects on economic activity in the near term.

Keywords: Macroprudential policy; Financial stability; Meta-analysis (search for similar items in EconPapers)
JEL-codes: E58 F38 G15 G18 G28 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:169:y:2024:i:c:s0378426624001870

DOI: 10.1016/j.jbankfin.2024.107273

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