Tags » Macroprudential Policy

(What's Left of) Our Economy: What Stanley Fischer's Next Speech on Finance Reform Should Discuss

Because Stanley Fischer’s first speech yesterday as Vice Chair of the Federal Reserve focused on financial sector reform, all the news reports and commentary focused on his views on financial sector reform – especially his carefully nuanced discussion of the strengths and weaknesses of individual proposals for further regulatory changes and other means of crisis prevention. 448 more words

{What's Left Of) Our Economy

Macroprudential Policy: the New Black in Central Banking

The practice of central banking finds itself in an existential dilemma. Keeping interest rates low is seen as necessary to keep recession and deflation at bay, but cheap money may well cause new systemic risks that could threaten financial stability and undermine economic recovery in the not too distant future. 1,181 more words

Systemic Risk

Macroprudential follies and procyclical central bankers

A couple of days ago I came across an article from Bloomberg, which I think is very telling about everything which is wrong about the recent hype about macroprudential policies. 1,367 more words

Bank Of Finland

Investors fleeing emerging markets are still showing the love to South Korea

The world is loving on Korea, and not just because of the latest K-pop.

Investors who’ve yanked their cash from emerging markets in recent months aren’t fleeing from Korea, which is being flooded with foreign capital. 252 more words

The Danger of an All-Powerful central bank - against macroprudential policies

I have often disagreed with the views of University of Chicago Professor John Cochrane over the paste five years. However, his latest oped in the… 1,378 more words

John Cochrane

Credit-to-GDP gap - A critical evaluation for Uganda

Published on March 31, 2013 in Bank of Uganda Working Paper Series WP11/2013


The paper critically evaluates the effectiveness of the countercyclical capital buffer and the guiding indicator credit-to-GDP gap proposed by the Basel Committee in Uganda, and finds that this indicator does not perform consistently as a forward looking indicator of systemic credit risk. 89 more words

How to model financial instability

There is a frentic activity out there on how to revise the modelling paradigm to the new norm of financial instability. Andrew Haldane from the Bank of England has recently been very critical of the current generation of macro models, including the DSGE tradition, and he… 299 more words

Central Banking