The Macroprudential Framework: Policy Responsiveness and Institutional Arrangements

By Cheng Hoon Lim, Ivo Krznar, Fabian Lipinsky, Akira Otani, Xiaoyong Wu

July 17, 2013

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Format: Chicago

Cheng Hoon Lim, Ivo Krznar, Fabian Lipinsky, Akira Otani, and Xiaoyong Wu. The Macroprudential Framework: Policy Responsiveness and Institutional Arrangements, (USA: International Monetary Fund, 2013) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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 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.

Subject: Banking, Economic sectors, Financial sector, Financial sector policy and analysis, Financial sector stability, Institutional arrangements for revenue administration, Macroprudential policy, Macroprudential policy instruments, Revenue administration

Keywords: Africa, Banking sector, Central bank, Central bank involvement, Coordination body, Credit, Cross-agency policy coordination, Europe, Financial sector, Financial sector stability, Global, Government index, Institutional arrangements for revenue administration, Institutions, Instruments, Interest rate, Macroprudential, Macroprudential policy, Macroprudential policy instruments, Middle East and Central Asia, Risk tolerance, Systemic risk, Western Hemisphere, WP

Publication Details

Pages:

40
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2013/166
Stock No:

WPIEA2013166
ISBN:

9781484377819
ISSN:

1018-5941

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