This paper explores monetary-macroprudential policy interactions in a simple, calibrated New Keynesian model incorporating the possibility of a credit boom precipitating a financial crisis and a loss function reflecting financial stability considerations. Deploying the countercyclical capital...

We analyze the effects of macroprudential policies on local bank credit cycles and interactions with international financial conditions. For identification, we exploit the comprehensive credit register containing all bank loans to individuals in Romania, a small open economy subject to external...

This note outlines the South African Reserve Bank's proposed framework for achieving its new financial stability mandate. It sets out the institutional structure, the focus and objectives of macroprudential policy and the decision-making process to be applied. It identifies and describes three...

Challenges to macroprudential policy are mainly of a universal nature and encompass, in particular, difficulties in the pre-emptive identification of looming imbalances; interactions with the political cycle; asymmetry in the perception of costs and benefits of using macroprudential instruments;...

The Bangko Sentral ng Pilipinas (BSP) plays a key role in maintaining the financial system stability of the Philippines. While its primary objective is price stability, the BSP's clear monetary policy and financial stability frameworks have ensured that interactions between the two will remain...

This article reviews macroprudential measures implemented in Peru to counter the boom-bust pattern of the credit cycle and mitigate the risks associated with dollarisation, the main vulnerability of the Peruvian financial system.Full Publication: 'http://ssrn.com/abstract=3101163'...

Macroprudential tools were actively used in India long before the onset of the global financial crisis. The regulatory tools, and the power to activate them, reside with sectoral authorities, while the Financial Stability and Development Council is the apex body concerned with financial...

Macroprudential policy in Colombia is described along with a discussion of the main challenges faced by the authorities in implementing it and a review of episodes in which macroprudential measures were taken. An overview and some estimates of their effectiveness in preventing the buildup of...

This note discusses recent developments relating to Brazil's financial stability policy framework, including efforts to enhance its ability to anticipate vulnerabilities and prevent financial distress. The main sections are as follows: (i) institutional arrangements; (ii) the experience with...