Macroprudential Policy during COVID-19: The Role of Policy Space

2021 ◽  
Author(s):  
Katharina Bergant ◽  
Kristin Forbes

2021 ◽  
Author(s):  
Katharina Bergant ◽  
Kristin J. Forbes


2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Marcin Kolasa

AbstractThis paper studies how macroprudential policy tools applied to the housing market can complement the interest rate-based monetary policy in achieving one additional stabilization objective, defined as keeping either economic activity or credit at some exogenous (and possibly time-varying) levels. We show analytically in a canonical New Keynesian model with housing and collateral constraints that using the loan-to-value (LTV) ratio, tax on credit or tax on property as additional policy instruments does not resolve the inflation-output volatility tradeoff. Perfect targeting of inflation and credit with monetary and macroprudential policy is possible only if the role of housing debt in the economy is sufficiently small. The identified limits to the considered policies are related to their predominantly intertemporal impact on decisions made by financially constrained agents, making them poor complements to monetary policy, which also operates at an intertemporal margin. These limits can be overcome if macroprudential policy is instead designed such that it sufficiently redistributes income between savers and borrowers.



2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Juan Pablo Bohoslavsky ◽  
Kunibert Raffer

AbstractThis piece tackles Barrio Arleo and Lienau’s comments on Sovereign Debt Crises: What Have We Learned? while tries to further develop some ideas and discussions proposed in the book. This piece deals with existing alternatives to overcome debt crises, the link between sovereign policy space and the principle of creditors’ equal treatment, who the target of the book is (and should be), whether “learning is enough”, and the potential policy and legal role of human rights law in debt restructurings.





2021 ◽  
Author(s):  
Ugo Albertazzi ◽  
Emmanuelle Assouan ◽  
Oreste Tristani ◽  
Gabriele Galati ◽  
Thomas Vlassopoulos ◽  
...  


2012 ◽  
Vol 03 (01) ◽  
pp. 1240007 ◽  
Author(s):  
IAN GOLDIN ◽  
KENNETH A. REINERT ◽  
JAVIER H. BEVERINOTTI

This paper addresses the role of policy in the relationship between globalization and development by considering four examples: trade-related capacity building, standards for multinational enterprises, medical brain drain, and access to medicines. The paper demonstrates that, despite concerns about policy space, there is some room for improving the way that globalisation processes contribute to development and poverty alleviation. None of the policies considered constitutes a fix-all but rather can make some marginal changes that could be significant in the long run.



2021 ◽  
Vol 19 (4) ◽  
pp. 703-714
Author(s):  
Le Dinh Hac ◽  

The study was conducted to assess the impact of the banking sector's concentration on the banking system's stability in Emerging and growth-leading economies (EAGLEs). In addition, the study also analyzed the role of macroeconomic factors in bank stability. By applying Bayesian multivariate linear regression, the posterior probability results show that money supply growth and credit growth erode the soundness of the banking system. On the other hand, economic growth helps to improve banking stability, but this effect is not obvious; surprisingly, inflation also increases the banking stability of the Emerging and growth-leading economies. Finally, the study shows that the equity ratio to total assets has a reverse relationship with bank stability. Due to data limitations, this study has not yet examined the role of macroprudential policy instruments in maintaining banking stability. Hence, in future studies, besides the factors considered in this study, we should focus on analyzing the impact of macroprudential policy instruments on banking stability.



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