regulation did not take the “big picture” of the system sufficiently into account and, subsequently, financial supervision mainly … “missed the forest for the trees”. As a result, the need for macroprudential aspects of regulation emerged, which has recently … macroprudential regulation in creating stable, yet efficient financial systems. At the same time, I emphasize the importance of …

We study the macroprudential roles of bank capital regulation and monetary policy in a borrowing cost channel model …, countercyclical regulation is more effective than monetary policy in promoting price, financial and macroeconomic stability. For … supply shocks, combining macroprudential regulation with a stronger anti-inflationary policy stance is optimal. The findings …