Macroprudential Policy and Aggregate Demand

André Teixeira and Zoë Venter
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André Teixeira: ISEG, REM/UECE, Universidade de Lisboa
Zoë Venter: Católica Lisbon School of Business and Economics

International Journal of Central Banking, 2023, vol. 19, issue 4, 1-40

Abstract: This paper assesses the impact of macroprudential policy (MaPP) on aggregate demand in the EU between 2000 and 2019. Using a difference-in-differences approach, we find that MaPP reduces household consumption and increases firm investment. These effects are relatively mild in the short run but become more pronounced in the long run. Our findings point to a weaker macroeconomic impact than suggested in previous studies.

JEL-codes: E21 E22 E52 E58 O47 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ijc:ijcjou:y:2023:q:4:a:1

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