IMF Working Papers

Effects of Macroprudential Policy: Evidence from Over 6,000 Estimates

By Juliana Dutra Araujo, Manasa Patnam, Adina Popescu, Fabian Valencia, Weijia Yao

May 22, 2020

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Juliana Dutra Araujo, Manasa Patnam, Adina Popescu, Fabian Valencia, and Weijia Yao. Effects of Macroprudential Policy: Evidence from Over 6,000 Estimates, (USA: International Monetary Fund, 2020) accessed November 21, 2024

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Summary

This paper builds a novel database on the effects of macroprudential policy drawing from 58 empirical studies, comprising over 6,000 results on a wide range of instruments and outcome variables. It encompasses information on statistical significance, standardized magnitudes, and other characteristics of the estimates. Using meta-analysis techniques, the paper estimates average effects to find i) statistically significant effects on credit, but with considerable heterogeneity across instruments; ii) weaker and more imprecise effects on house prices; iii) quantitatively stronger effects in emerging markets and among studies using micro-level data; and iii) statistically significant evidence of leakages and spillovers. Other findings include relatively stronger impacts for tightening than loosening actions and negative effects on economic activity in the near term.

Subject: Consumer credit, Credit, Financial sector policy and analysis, Housing prices, Macroprudential policy, Macroprudential policy instruments, Money, Prices

Keywords: Absolute value, Consumer credit, Credit, Credit growth, Descriptive statistics, Effect size, Financial Development, Financial inclusion, Financial Stability, Global, House price, Household credit, Housing prices, Least squares, Macroprudential policy, Macroprudential policy instruments, Monetary policy, Outcome variable, Real GDP, Remittances, Selection bias correction term, Standard error, WP

Publication Details

  • Pages:

    48

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2020/067

  • Stock No:

    WPIEA2020067

  • ISBN:

    9781513545400

  • ISSN:

    1018-5941

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