Abstract
The pursuit of a new “macro-prudential” policy agenda has become a call to arms for many central banks and multilateral institutions seeking to lean against financial factors that promote macroeconomic volatility. Cyclical use of prudential policy, such as variation in capital requirements, is fraught with risks. It should only be employed during extreme circumstances. In general, policy makers should focus on strengthening traditional monetary policy rules and micro-prudential policies.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
