In the wake of the 2008 financial crisis, the US Federal Reserve has looked at using macroprudential tools – regulatory and rule-based actions, distinct from traditional monetary policy – to mitigate systemic risk in future financial disruptions. In this high-level examination of macroprudential applications, central bankers Tobias Adrian, Patrick de Fontnouvelle, Emily Yang and Andrei Zlate examine how and why the levers would work during a potential risk event. getAbstract recommends their comprehensive, esoteric insider’s report to central bankers, policy makers and financial professionals.
In this summary, you will learn
- How macroprudential tools might assist in mitigating financial crises and
- How effective such tools may be in forestalling or dampening risk impacts.
About the Authors
Tobias Adrian is a senior vice president and Emily Yang is an assistant vice president at the Federal Reserve Bank of New York. Patrick de Fontnouvelle is a vice president and Andrei Zlate is a senior financial economist at the Federal Reserve Bank of Boston.