EconPapers    
Economics at your fingertips  
 

CENTRAL BANKS AND MACROPRUDENTIAL POLICIES: ECONOMICS AND POLITICS

Donato Masciandaro ()

No 1878, BAFFI CAREFIN Working Papers from BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy

Abstract: The 2007-2008 global financial crisis highlighted the importance of establishing macroprudential architectures to address problems of financial stability. Central banks are always part of macroprudential settings, but their role is far from homogeneous across countries. How can this heterogeneity be explained? The aim of the chapter is twofold. First, it offers a systematic review of the economics of central bank involvement in macroprudential policies, which leads to the conclusion that political motivations are highly relevant drivers. Second, given this insight, it explores the institutional settings in 31 advanced and emerging market economies and sheds light on several key drivers of the central banker’s role as a macroprudential supervisor: central bankers who are already in charge of microeconomic supervision and less politically independent are more likely to be granted extended macroprudential powers. The same is true for central bankers who have low levels of monetary policy discretion.

New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
ftp://ftp.unibocconi.it/pub/RePEc/baf/papers/cbafwp1878.pdf (application/pdf)

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:baf:cbafwp:cbafwp1878

Access Statistics for this paper

More papers in BAFFI CAREFIN Working Papers from BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy Via Röntgen, 1 - 20136 Milano - Italy. Contact information at EDIRC.
Bibliographic data for series maintained by Erika Somma ().

 
Page updated 2019-04-08
Handle: RePEc:baf:cbafwp:cbafwp1878