The role of macroprudential policy in the stabilisation of macro-financial fluctuations. Conference on Financial Stability/Banco de Portugal, Lisbon (Portugal), 2 October 2023

Abstract

Macroprudential policy emerged after the global financial crisis to increase the resilience of the financial system against systemic risk and to prevent the excessive accumulation of such risk. This paper focuses on the effects of this policy on macroeconomic stability, a goal that it can complement monetary and fiscal policies in helping to achieve. Specifically, the potential role for this purpose of capital buffers and, in particular, the countercyclical capital buffer (CCyB), is examined.