This paper describes how behavioral elements are relevant to financial supervision,regulation, and central banking. It …

. The implications for systemic risk and prudential regulation are assessed under the prism of Basel III, and potential …

financial tranquility always call for more stringent regulation over time? We examine this question using a simple portfolio … optimal regulation/macroprudential policy. Our paper implies that policymakers should not only consider the cyclical …

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 …