Sentences with phrase «use macroprudential»

This logic suggests that it is very important to have a public sector body with both the power and the paramount responsibility to use macroprudential tools to promote financial stability.

Not exact matches

There are also macroprudential tools — regulatory measures that can be used to promote not just the safety of an individual financial institution, but also that of the entire financial system.

Thus, the hope is that U.S. policymakers can learn from these international experiences and incorporate effective macroprudential tools into our toolkit that could be used to limit financial stability risks.

This is reflected in the increasing use of what are commonly known as macroprudential policies.

«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.»

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.