We show that macroprudential regulation can considerably dampen the impact of globalfinancial shocks on emerging … markets. More specifically, a tighter level of regulation reducesthe sensitivity of GDP growth to VIX movements and capital … andliquidity, foreign currency mismatches, and risky forms of credit. We also find that tightermacroprudential regulation allows …

rely on domestic macroprudential regulation? This paper presents a tractable model to show that it is desirable to employ … both types of instruments: Macroprudential regulation reduces overborrowing, while capital controls increase the aggregate … countries, we find optimal capital controls and macroprudential regulation in the magnitude of 2 percent. In advanced countries …