Macroprudential policies: Interaction, effects and coordination

Presenter(s) Type Length Chair
Marc Hinterschweiger Eddie Gerba Alexandra Varadi Special
Victoria Saporta

Macroprudential policies aim at enhancing financial resilience while reducing systemic risks. Their individual objective, target and effects are very heterogeneous, however. In addition, most of them are simultaneously activated, and so do not act in isolation. This session will examine the nature in which they interact, their joint impact, interaction with monetary policy, as well as the optimal combination and coordination. The measures that will be examined include bank-based (capital requirements, leverage ratio, countercyclical capital buffers, sectoral capital buffers) as well as borrower-based (loan-to-value ratio, debt-service ratio) measures. The session also focuses on several modelling specifics, such as financial frictions due to interest rate stickiness and geographical heterogeneity of optimal macroprudential policy.

Discussants - Katarzyna Budnik and Mara Pirovano, ECB


(Listed in order of presenters above)

Macroprudential policy interactions in a sectoral DSGE model with staggered interest rates

Read paper

Quest for Robust Optimal Macroprudential Policy

Read paper

The macroprudential toolkit: effectiveness and interactions

Read paper