Sentences with phrase «macroprudential measures»

The rate hike has arrived at a critical time for the banks with many speculating that the chief banking regulator the Australian Prudential Regulatory Authority is about to introduce a new series of macroprudential measures designed to slow the property market.

The best way to safeguard financial stability and improve the balance between economic and financial risk taking is to put in place policies that enhance the transmission of monetary policy to the real economy — thus promoting economic risk taking — and address financial excesses through well - designed macroprudential measures.

So we need a better grasp of how monetary policy and macroprudential measures interact.

Some countries have implemented macroprudential measures with respect to the housing market that may have limited the extent of home price appreciation and made their financial systems more resilient when the boom unwound.

While real estate might be a product of local markets, probably the single biggest reason for the potential nation - wide real estate slowdown in 2017 are macroprudential measures introduced in late 2015 and throughout 2016 (and possibly stretching into this year, should banks be required to cover a portion of mortgage default losses).

Despite the IMF's optimism, I assume it nearly takes an act of god to increase property taxes so property taxes don't make a great macroprudential measure.

The U.S. housing boom and subsequent bust might have been less severe had a set of macroprudential measures been in place at the time to limit the degree of leverage and speculative activity in the housing sector.

The macroprudential measures that give Poloz and Schembri comfort were ad hoc, devised behind closed doors by an informal committee of senior technocrats led by the deputy minister of finance.

These policies are the opposite of the macroprudential measures he implemented after the financial crisis.

He was an early advocate of unconventional monetary policies and of macroprudential measures to keep asset bubbles in check.

Even if such spillovers are important, a clear assignment of policies could be effective in achieving both objectives: monetary policy to target inflation, macroprudential measures to target financial stability.

If the external shocks seemed to pose financial stability risks, macroprudential measures might be introduced as a complement or backstop to existing regulations and oversight of domestic financial systems.

Unfortunately, the energy rout and its effects on global financial markets originated in the commodity sector, and it would have occurred regardless the readiness of macroprudential measures (financial regulations).

In Canada, these macroprudential measures included the increase to minimum down payments required for home purchases over $ 500,000 and the requirement of all high loan - to - value borrowers (and those who chose amortizations over 25 years) to qualify based on posted mortgage rates, rather than discounted mortgage rates.

That is, to be effective, I think any macroprudential measures, such as a property speculation tax, taken to stabilize home prices in London with its small, regressive ~ 0.27 % property tax would have to be vastly larger than the measures needed to be effective in Texas with its large, progressive ~ 1.7 % property tax.

The takeaway here seems to be that areas with low property taxes are significantly more prone to damaging real estate bubbles, therefore, any macroprudential measures taken by governments or central banks to discourage real estate bubbles and stabilize home prices will need to be significantly stronger in areas with low property taxes.