The effectiveness of macro-prudential policies to mitigate credit cycles and reduce capital flow volatility is at the center of policy debates. In this chapter, we investigate the factors which influence the performance of macro-prudential tools by focusing on institutions, financial structure,...

The shock waves of the 2008-09 global financial crisis and the 2011-12 Eurozone debt crisis hit emerging markets from the trade, the finance and the expectations channels. We focus on the finance channel in this paper. We first discuss the challenges arising from capital flow volatility in...

This is the foreword to ‘Macroprudential Policy' (BIS Paper No. 86) which contains papers presented at the joint Central Bank of the Republic of Turkey (CBRT) - Bank for International Settlements (BIS) - International Monetary Fund (IMF) conference on "Macroprudential policy: effectiveness and...