Danielsson, Jon 
ORCID: 0009-0006-9844-7960, Macrae, Robert, Tsomocos, Dimitrios P. and Zigrand, Jean-Pierre ORCID: 0000-0002-7784-4231
(2016)
Why macropru can end up being procyclical.
VoxEU.
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Abstract
Discretionary macroprudential policies aim to be countercyclical by adjusting risk-taking across the financial cycle. This column argues that the opposite effect may happen in certain cases. Depending on how regulators measure risk and how they react, the eventual outcome may well be procyclical, with serious unintended consequences.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.voxeu.org/ |
| Additional Information: | © 2016 VoxEU.org |
| Divisions: | Finance Systemic Risk Centre Financial Markets Group |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HG Finance |
| JEL classification: | E - Macroeconomics and Monetary Economics > E0 - General |
| Date Deposited: | 24 Mar 2017 15:16 |
| Last Modified: | 12 Dec 2024 01:18 |
| URI: | http://eprints.lse.ac.uk/id/eprint/70711 |
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