We provide a theory of the limits to monetary policy independence in open economies arising from the interaction between capital flows and domestic collateral constraints. The key feature of our theory is the existence of an 'Expansionary Lower Bound' (ELB), defined as an interest rate threshold...

Drawing on a recent survey of emerging market economy central banks, this note highlights the different channels through which the influence of macroprudential measures can extend beyond national borders, and discusses the need and scope for international cooperation of macroprudential...

This note discusses key issues regarding communication of macroprudential frameworks and draws on a recent survey of emerging market economy central banks to highlight factors that are of particular relevance to emerging market economies.Full Publication: 'http://ssrn.com/abstract=3101163'...