Macroprudential Policy Effectiveness: Lessons from Southeastern Europe
This paper presents a detailed account of the rich set of macroprudential measures (MPPs) implemented in Bulgaria, Croatia, Romania, and Serbia during their synchronized boom and bust cycles in 2002–12, and assesses their effectiveness in managing credit growth. Only strong MPPs helped contain domes...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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University of Warsaw
2018-01-01
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| Series: | Journal of Banking and Financial Economics |
| Subjects: | |
| Online Access: | https://jbfe.wz.uw.edu.pl/resources/html/article/details?id=202785 |
| _version_ | 1797230113505411072 |
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| author | Jérôme Vandenbussche Piyabha Kongsamut Dilyana Dimova |
| author_facet | Jérôme Vandenbussche Piyabha Kongsamut Dilyana Dimova |
| author_sort | Jérôme Vandenbussche |
| collection | DOAJ |
| description | This paper presents a detailed account of the rich set of macroprudential measures (MPPs) implemented in Bulgaria, Croatia, Romania, and Serbia during their synchronized boom and bust cycles in 2002–12, and assesses their effectiveness in managing credit growth. Only strong MPPs helped contain domestic credit growth during the boom years, but circumvention via direct external borrowing offset their effectiveness to a large extent. MPPs taken during the bust had no discernible impact. The paper concludes that (i) proper calibration of MPPs is of the essence; (ii) only strong, broad-based MPPs can contain credit booms; (iii) econometric studies of macroprudential policy effectiveness should focus on concrete policy measures rather than on instruments use; and (iv) in so doing should allow for possible non-linear and state-contingent effects. |
| first_indexed | 2024-04-24T15:23:19Z |
| format | Article |
| id | doaj.art-4dc400f770b7452089cf7e8de1208188 |
| institution | Directory Open Access Journal |
| issn | 2353-6845 |
| language | English |
| last_indexed | 2024-04-24T15:23:19Z |
| publishDate | 2018-01-01 |
| publisher | University of Warsaw |
| record_format | Article |
| series | Journal of Banking and Financial Economics |
| spelling | doaj.art-4dc400f770b7452089cf7e8de12081882024-04-02T07:20:45ZengUniversity of WarsawJournal of Banking and Financial Economics2353-68452018-01-01201816010210.7172/2353-6845.jbfe.2018.1.4Macroprudential Policy Effectiveness: Lessons from Southeastern EuropeJérôme Vandenbussche0Piyabha Kongsamut1 Dilyana Dimova2International Monetary Fund International Monetary Fund International Monetary Fund This paper presents a detailed account of the rich set of macroprudential measures (MPPs) implemented in Bulgaria, Croatia, Romania, and Serbia during their synchronized boom and bust cycles in 2002–12, and assesses their effectiveness in managing credit growth. Only strong MPPs helped contain domestic credit growth during the boom years, but circumvention via direct external borrowing offset their effectiveness to a large extent. MPPs taken during the bust had no discernible impact. The paper concludes that (i) proper calibration of MPPs is of the essence; (ii) only strong, broad-based MPPs can contain credit booms; (iii) econometric studies of macroprudential policy effectiveness should focus on concrete policy measures rather than on instruments use; and (iv) in so doing should allow for possible non-linear and state-contingent effects.https://jbfe.wz.uw.edu.pl/resources/html/article/details?id=202785macroprudential policiesfinancial stabilitycredit growthsoutheastern europe |
| spellingShingle | Jérôme Vandenbussche Piyabha Kongsamut Dilyana Dimova Macroprudential Policy Effectiveness: Lessons from Southeastern Europe Journal of Banking and Financial Economics macroprudential policies financial stability credit growth southeastern europe |
| title | Macroprudential Policy Effectiveness: Lessons from Southeastern Europe |
| title_full | Macroprudential Policy Effectiveness: Lessons from Southeastern Europe |
| title_fullStr | Macroprudential Policy Effectiveness: Lessons from Southeastern Europe |
| title_full_unstemmed | Macroprudential Policy Effectiveness: Lessons from Southeastern Europe |
| title_short | Macroprudential Policy Effectiveness: Lessons from Southeastern Europe |
| title_sort | macroprudential policy effectiveness lessons from southeastern europe |
| topic | macroprudential policies financial stability credit growth southeastern europe |
| url | https://jbfe.wz.uw.edu.pl/resources/html/article/details?id=202785 |
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