. Without regulation, funds hold insufficient deposits and must sell bonds when hit by large redemptions. Bond liquidation is … reduction of deposits held by households, a macroprudential liquidity requirement improves welfare by reducing bond liquidation …

implemented macro-prudential measures. Overall, we expect central banks in the future to have broader mandates, use macro-prudential …

this extended framework to assess the costs and benefits of monetary and macroprudential policy. We find that … macroprudential policy has net marginal benefits in addressing risks to financial stability in the euro area, whereas monetary policy … has net marginal costs. This would suggest that an active use of macroprudential policies targeting financial stability …

We analyse the cross-border propagation of prudential regulation in the euro area. Using the Prudential Instruments …

This paper reexamines from a theoretical perspective the role of monetary and macroprudential policies in addressing … is introduced by open market sales of government debt, and tight macroprudential policy by an increase in capital … requirements. We show that both policies are useful, but macroprudential policy is more effective in fostering financial stability …

Recent research developed under the ECB research task force on Monetary Policy, Macroprudential Policy and Financial … Stability highlights the existence of trade-offs and spillovers that monetary policy and macroprudential authorities face when … they could also have unintended consequences on financial stability risks. Macroprudential policies are instead effective …

, akin to the concept of “Growth-at-risk”. We illustrate how the method can inform the calibration of countercyclical … macroprudential policy instruments …