IMF-IMFS Panel Discussion: "Macroprudential Policy Tools - How Well Do They Work?"

Описание: The International Monetary Fund (IMF) and the Institute for Monetary and Financial Stability (IMFS) hosted a panel discussion with Elena Carletti (Bocconi University), Francesco Mazzaferro (European Systemic Risk Board), and Erlend Nier (IMF). The discussion was moderated by Volker Wieland (IMFS).

Macroprudential policy is still relatively new. While their use by emerging market economies dates back longer, macroprudential policy was embraced by many advanced economies only after the Global Financial Crisis. Since then, a range of tools – capital buffers and liquidity tools – were established as part of the post crisis reform, and borrower-based tools, such as loan to value and debt service limits are also being used more widely.

Based on a new paper by IMF authors, this panel will discuss how well the tools have been working. Have macroprudential policy tools delivered on their promise to contain the build-up of systemic vulnerabilities and increase the resilience of the system to adverse macro-financial feedback effects? What is known about how the strength of the effects varies with economic conditions and over time? How strong are the side effects and unintended leakages of the current toolkit? And how do the tools work when used together with changes in monetary policy settings?

Overall, therefore, how can the toolkit be deployed most effectively, both in the current conjuncture of tightening financial conditions, and over the longer term?