EconPapers    
Economics at your fingertips  
 

Why macropru can end up being procyclical

Jon Danielsson, Robert Macrae, Dimitrios Tsomocos and Jean-Pierre Zigrand

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Discretionary macroprudential policies aim to be countercyclical by adjusting risk-taking across the financial cycle. This column argues that the opposite effect may happen in certain cases. Depending on how regulators measure risk and how they react, the eventual outcome may well be procyclical, with serious unintended consequences.

Keywords: macropru; risk-taking; financial cycle; macroprudential; pro cyclical (search for similar items in EconPapers)
JEL-codes: E0 (search for similar items in EconPapers)
Date: 2016-12-15
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in VoxEU.org, 15, December, 2016

Downloads: (external link)
http://eprints.lse.ac.uk/70711/ Open access version. (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:ehl:lserod:70711

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().

 
Page updated 2019-03-31
Handle: RePEc:ehl:lserod:70711