Macroprudencial policy (Columba et al.)

Macroprudential policy: What instruments and how to use them? Lessons from country experiences by Francesco Columba, Alejo Costa and Cheng Hoon Lim. “In the wake of the 2008 financial crisis, there has been burgeoning interest in macroprudential policy as an overarching framework to address the stability of the financial system as a whole rather than only its individual components. This column, based on a new dataset from 49 countries, shows that some macroprudential instruments are effective in reducing procyclicality in the financial system, and thus systemic risks.”