The severity of the Great Recession awakened economic leaders to the need for financial stability policies that address risks to the global economy, specifically those arising from fragile banking systems and uncontrolled leverage in the housing sector. This recap from the International Monetary Fund of how five diverse economies have addressed their macroprudential regulatory needs offers evidence of some early successes. getAbstract recommends this broad and cogent report to central bankers, economists and policy makers.
In this summary, you will learn
- Why macroprudential regulatory policy has become critical in the wake of the Great Recession,
- What financial stability policies seek to accomplish and
- How five economies’ macroprudential policies have shown some early signs of success.
About the Authors
Salim M. Darbar and Xiaoyong Wu are economists at the International Monetary Fund.