This paper investigates the impact of banking prudential regulation on sovereign risk. We show that prudential regulation reduces sovereign risk and induces governments to spend more. As a result, countries with tight prudential regulation have lower primary budget balances and accumulate more...

This paper investigates the impact of banking prudential regulation on sovereign risk. We show that prudential regulation reduces sovereign risk and induces governments to spend more. As a result, countries with tight prudential regulation have lower primary budget balances and accumulate more...

This paper investigates the impact of banking prudential regulation on sovereign risk. We show that prudential regulation reduces sovereign risk and induces governments to spend more. As a result, countries with tight prudential regulation have lower primary budget balances and accumulate more...

Using a dataset of 171 countries, I show that macroprudential policy (MaPP) exacerbates wealth inequality. I find that, after the adoption of MaPP, wealth concentration as measured by the Gini index increases by about 4.4 percentage points relative to a synthetic control country without MaPP....

This paper assesses the impact of macroprudential policy (MaPP) on aggregate demand in the EU between 2000-2019. Using a difference-in-differences approach, we find that MaPP reduces household consumption and increases firm investment. These effects are relatively mild in the short run but...

This paper investigates the real effects of macroprudential policy (MaPP) using individual data from 122 countries. The empirical analysis shows that MaPP increases savings and decreases borrowing. These effects are then disaggregated by policy instrument, interest rate and country income level....