Description

Using a recent IMF survey and expanding on previous studies, we document the use of
macroprudential policies for 119 countries over the 2000-13 period, covering many
instruments. Emerging economies use macroprudential policies most frequently, especially
foreign exchange related ones, while advanced countries use borrower-based policies more.
Usage is generally associated with lower growth in credit, notably in household credit.
Effects are less in financially more developed and open economies, however, and usage
comes with greater cross-border borrowing, suggesting some avoidance. And while
macroprudential policies can help manage financial cycles, they work less well in busts.

More publications in this series: Working Papers

More publications by: Eugenio Cerutti ; Stijn Claessens ; Luc Laeven