Macroprudentialism: A VoxEU.org eBook

by Dirk Schoenmaker (Editor)

Global interest rates have been extraordinarily low since the Global Financial Crisis. This recession-fighting monetary policy, however, may be inflating financial bubbles. Macroprudentialism is the policy that many central banks are using to reduce the chances that today’s low-for-long rates are sowing the seeds of future crises.

Macroprudentialism, however, involves a set of relatively untested policies. Things as basic as the precise objective of macroprudential frameworks and their interactions with monetary policy and microprudential supervision are still not clear.

This eBook collects the thinking on macroprudentialism from a broad range of leading US and European economists. The authors come to a consensus on the broad objectives of macroprudential supervision, but important disagreements remain.

217 pages, Kindle Edition

Published December 14, 2014