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The fatal flaw in macropru: it ignores political risk

Danielsson, Jon and Macrae, Robert (2016) The fatal flaw in macropru: it ignores political risk. VoxEU.

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Political risk is a major cause of systemic financial risk. This column argues that both the integrity and the legitimacy of macroprudential policy, or ‘macropru’, depends on political risk being included with other risk factors. Yet it is usually excluded from macropru, and that could be a fatal flaw.

Item Type: Article
Official URL:
Additional Information: © 2016
Divisions: Finance
Systemic Risk Centre
Financial Markets Group
Subjects: H Social Sciences > HB Economic Theory
JEL classification: E - Macroeconomics and Monetary Economics > E0 - General
Date Deposited: 24 Mar 2017 15:08
Last Modified: 19 Aug 2021 23:15
Projects: ES/K002309/1
Funders: Economic and Social Research Council

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