Macroprudential Policies and the COVID-19 Pandemic: Risks and Challenges for Emerging Markets

Sebastian Edwards

Chapter 6 in Macro-financial Stability Policy in a Globalised World: Lessons from International Experience:Selected Papers from the Asian Monetary Policy Forum 2021 Special Edition and MAS-BIS Conference, 2023, pp 74-120 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This chapter deals with COVID-19 and macroprudential regulations in emerging markets. It documents 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. The chapter explains that, in every country, regulatory forbearance played a key role in the response to COVID-19; discusses capital controls as macroprudential instruments; argues that rebuilding the macroprudential fabric is important to reduce the costs of future systemic shocks; and maintain that post-COVID-19 regulations should incorporate the risks associated with digital currencies.

Keywords: Macro-financial Policy; Policy Framework; Macroprudential Policy; Monetary Policy; Fiscal Policy; Capital Flow Management Measure; Capital Control; Foreign Exchange Intervention; Integrated Policies; Multiple Policies; Policy Trade-off; Policy Substitute; Policy Complement; Policy Interaction; Policy Space; Central Bank; International Spillovers; Spillbacks; Sending Country; Receiving Country; Financial Channel; Financial Regulation; Financial Stability; External Stability; Advanced Economy; Emerging Market Economy; Capital Flow; Portfolio Flow; Banking Flow; Exchange Rate; Banking System; Non-bank Financial Institution; United Kingdom; Sweden; China; Hong Kong Sar; India; Indonesia; Korea; Singapore; Latin America; Croatia (search for similar items in EconPapers)
JEL-codes: E E52 E58 E6 F F01 F3 F38 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789811259432_0006 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789811259432_0006 (text/html)
Ebook Access is available upon purchase.

Related works:
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:wsi:wschap:9789811259432_0006

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().