Macroprudential Policy Framework, Implementation and Relationships with Other Policies

Sources of systemic financial risk change across countries and over time. Multiple features need to be considered when making macroprudential policy choices, such as the depth of the financial system, the institutional background, the existing governance framework, and the links between macroprudential, monetary and capital flow policies. Such policy choices should be flexible enough to suit such heterogeneity, especially in emerging market economies.The case of Argentina, as presented in this note, provides an example of a policy framework in which specific circumstances have strongly influenced the cost/benefit analysis of policy, and the timing and sequence of reforms.Against this backdrop, international standard setters play an important role in promoting a better understanding of macroprudential policy issues as well as of the type of analysis that should guide policy choices prior to standardising a specific macroprudential policy toolkit.Full Publication: 'http://ssrn.com/abstract=3101163' Macroprudential Frameworks, Implementation and Relationship with Other Policies