A new dimension to currency mismatches has been created by policies that have increased global liquidity. Lower policy rates and a huge expansion in central bank balance sheets - purchases of domestic bonds in the advanced economies and of foreign assets in the emerging market economies (EMEs) -...

The Bernanke-Blinder closed economy model suggests that macroprudential policies aimed at bank lending will affect the domestic long-term interest rate. In an open economy, domestic shocks to long-term rates are likely to influence capital flows and the exchange rate. Currency movements feed...

We analyse how the effectiveness of price-based and quantity-based macroprudential measures vary by the level of financial development, using panel data for 37 advanced and emerging market economies over 1996–2011. First, we find that quantity-based measures effectively smooth the variations...

In this session, we shall have presentations on capital flows, on credit cycles and on policies in an oil-exporting economy. By way of introduction to how these topics are linked, I would like to underline the key role of the exchange rate and explain what Bruno and Shin (2015) have called the...

This book celebrates the life and work of Palle Schelde Andersen, a Danish economist who was for over two decades the main macroeconomist of the Bank for International Settlements (BIS). The book contains the papers and proceedings of a conference that was held at the BIS in Mr Andersen's honour...

This paper discusses some of the domestic implications of the recent large-scale use of foreign exchange intervention by emerging market economies to resist currency appreciation. Over the past five years, many countries have adopted an accommodating monetary policy while intervening. Despite...