Evaluating the Net Benefits of Macroprudential Policy

Evaluating the Net Benefits of Macroprudential Policy
Author :
Publisher : International Monetary Fund
Total Pages : 73
Release :
ISBN-10 : 9781484335727
ISBN-13 : 1484335724
Rating : 4/5 (27 Downloads)

Book Synopsis Evaluating the Net Benefits of Macroprudential Policy by : Mr.Nicolas Arregui

Download or read book Evaluating the Net Benefits of Macroprudential Policy written by Mr.Nicolas Arregui and published by International Monetary Fund. This book was released on 2013-07-17 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper proposes a simple, new, analytical framework for assessing the cost and benefits of macroprudential policies. It proposes a measure of net benefits in terms of parameters that can be estimated: the probability of crisis, the loss in output given crisis, policy effectiveness in bringing down both the probability and damage during crisis, and the output-cost of a policy decision. It discusses three types of policy leakages and identifies instruments that could best minimize the leakages. Some rules of thumb for policymakers are provided.


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