2017/12/01 by Joshua Aizenman, Menzie Chinn, Hiro Ito · 1 citation
Economics, Econometrics and Finance · #Banking stability, regulation, efficiency #Global Financial Crisis and Policies #Monetary Policy and Economic Impact
paper · pdf · doi:10.3386/w24105
openalex publication_date 2017/12/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/01
We estimate the impact of the extensity of macroprudential policies on the correlation of the policy interest rates between the center economies (CEs, i.e., the U.S., Japan, and the Euro area), and the peripheral economies (PHs). We find a more extensive implementation of macroprudential policies would lead PHs to (re)gain monetary independence from the CEs when the CEs implement expansionary monetary policy; when PHs run current account deficit; when they hold lower levels of international reserves; when their financial markets are relatively closed; when they are experiencing an increase in net portfolio flows; and when they are experiencing credit expansion.