The global financial crisis has focused much attention on procyclicality, particularly in the context of a macroprudential framework. This paper reviews a set of prudential measures that can be adopted by national authorities to deal with procyclicality and discusses issues in designing and...

The European crisis came to an end when first political leaders and then the European Central Bank promised to do whatever it takes to safeguard the euro. Specifically they committed to create a European banking union and to buy unlimited amounts of sovereign debt in distressed markets for...