Bouveret, Antoine; Breuer, Peter; Chen, Yingyuan; … - 2015
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 …