Contents: 1. Introduction By Charles A. E. Goodhart and Dimitrios P. Tsomocos -- 2. "Principles for Macroprudential Regulation", (A.K. Kashyap, D.P. Tsomocos and A.P. Vardoulakis), Banque de France Financial Stability Review, No.18, pp. 173-182, April -- 3. "The Macroprudential Toolkit", (R....

This paper sets out a tractable model which illuminates problems relating to individual bank behaviour, to possible contagious inter-relationships between banks, and to the appropriate design of prudential requirements and incentives to limit ‘excessive’ risk-taking. Our model is rich enough...