Home » Macroprudential Framework: Policy Responsiveness and Institutional Arrangements by Cheng Hoon Lim
Macroprudential Framework: Policy Responsiveness and Institutional Arrangements Cheng Hoon Lim

Macroprudential Framework: Policy Responsiveness and Institutional Arrangements

Cheng Hoon Lim

Published June 13th 2014
ISBN : 9781299803053
ebook
41 pages
Enter the sum

 About the Book 

This paper gauges if, and how, institutional arrangements are correlated with the use of macroprudential policy instruments. Using data from 39 countries, the paper evaluates policy response time in various types of institutional arrangements forMoreThis paper gauges if, and how, institutional arrangements are correlated with the use of macroprudential policy instruments. Using data from 39 countries, the paper evaluates policy response time in various types of institutional arrangements for macroprudential policy and finds that the macroprudential framework that gives the central bank an important role is associated with more timely use of macroprudential policy instruments. Policymakers may also tend to use macroprudential instruments more quickly if the ability to conduct monetary policy is somehow constrained. This finding points to the importance of coordination between macroprudential and monetary policy.