Sentences with phrase «of macroprudential policy»
As my colleagues David Orsmond and Fiona Price note in a Bulletin article in December 2016, there is no universally accepted definition of macroprudential policy.
https://www.rba.gov.au/
So what I am describing is very much in keeping with the «state of mind» of macroprudential policy that I described in my speech here in 2012.
When other countries saw the promise of macroprudential policy, they set up stand - alone entities to apply it, leaving monetary authorities free to concentrate on economic growth and inflation.
This might mean, for example, that the central bank would need to run a more stimulative policy than it would have otherwise to offset the effect of macroprudential policies, and the macroprudential authority would impose more stringent measures than it would have otherwise to counteract the leverage and risk taking generated by looser monetary policy.
If the effectiveness of macroprudential policies could be relied on, would that mean that monetary policy is off the hook, allowing the Bank to focus on its inflation target and leave macroprudential policies to take care of financial stability?
The limitations of macroprudential policies reflect the potential for risks to emerge outside sectors subject to regulation, the potential for supervision and regulation to miss emerging risks, the uncertain efficacy of new macroprudential tools such as a countercyclical capital buffer, and the potential for such policy steps to be delayed or to lack public support.14 Given such limitations, adjustments in monetary policy may, at times, be needed to curb risks to financial stability.15
Not exact matches
The lack of transparency around macroprudential policy feeds confusion and doubt.
WASHINGTON - Cleveland Fed President Loretta Mester moderates «Financial Innovation and Macroprudential Policy» panel before the Financial Stability and Fintech Conference organized by the Federal Reserve Bank of Cleveland, the Office of Financial Research and the University of Maryland 1330 GMT.
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.
Thus, it is possible that, in a situation of sustained weak aggregate demand, relying primarily on monetary policy to provide stimulus may lead to financial vulnerabilities that macroprudential policy can not, or should not, offset.
However, even with an ideal set of institutional arrangements, there may be limits to how independently monetary policy and macroprudential policy can work.
2See Macroprudential Policy: Case Study from a Tabletop Exercise, Tobias Adrian, Patrick de Foutnouvelle, Emily Yang, and Andrei Zlate, Federal Reserve Bank of New York Staff Report No. 742, September 2015.
Indeed, a combination of lower interest rates and more stringent macroprudential policy would likely work to reduce both financial stability risks and the risk of an undershoot of inflation at the same time.
Relying upon further macroprudential policy tools to contain housing risks in a timely manner is set against the mixed success of such measures to date.
This is reflected in the increasing use of what are commonly known as macroprudential policies.
In Australia, we see macroprudential policy as part and parcel of the financial stability framework.
Ellis L (2012), «Macroprudential Policy: A Suite of Tools or a State of Mind?»
In light of the considerable efforts under way to implement a macroprudential approach to enhance financial stability and the increased focus of policymakers on monitoring emerging financial stability risks, I see three key principles that should guide the interaction of monetary policy and macroprudential policy in the United States.
For a comprehensive discussion of financial stability arrangements in Australia, see the joint RBA and APRA document Macroprudential Analysis and Policy in the Australian Financial Stability Framework, < http://www.apra.gov.au/AboutAPRA/Publications/Documents/2012-09-map-aus-fsf.pdf > [7]
And these higher down payment rates you're talking about, some people are calling it the next big thing in terms of public policy and that's this macroprudential policy.
See Hoenig, «The Long - Run Imperatives of Monetary Policy and Macroprudential Supervision,» Cato Journal (Spring / Summer 2017), p. 195.
William C. Dudley, President and CEO (Panelist) Date: Saturday, October 3, 2015 Time: 11:00 AM Event: Federal Reserve Bank of Boston Conference: Macroprudential Monetary Policy Location: Federal Reserve Bank of Boston 600 Atlantic Ave Boston, MA
«Nonetheless, participants generally agreed that the Committee should not completely rule out the possibility of using monetary policy to address financial stability risks, particularly in circumstances in which such risks significantly threatened the achievement of its dual mandate and when macroprudential tools had been or were likely to be ineffective at mitigating those risks.»
«Our view is that these so - called macroprudential policies are best placed to deal with threats to financial stability because they can be designed to target specific financial vulnerabilities,» Poloz said, according to a text of his speech released in Ottawa.
Macroprudential is a term used to describe financial policies that are aimed at minimizing or eliminating risks to the financial system as a whole — think of it like a blanket, nation - wide policy that's used to eliminate or reduce systemic risk within our country's economy.
Since leaving the SEC in January 2008, she has served as Rapporteur for the Group of Thirty's report, The Structure of Financial Supervision: Approaches and Challenges in a Global Marketplace and as Project Director for their report, Enhancing Financial Stability and Resilience: Macroprudential Policy, Tools and Systems for the Future.