Increasing Resilience to Large and Volatile Capital Flows—The Role of Macroprudential Policies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Increasing Resilience to Large and Volatile Capital Flows—The Role of Macroprudential Policies write by International Monetary Fund. Strategy, Policy, & Review Department. This book was released on 2017-05-07. Increasing Resilience to Large and Volatile Capital Flows—The Role of Macroprudential Policies available in PDF, EPUB and Kindle. Capital flows can deliver substantial benefits for countries, but also have the potential to contribute to a buildup of systemic financial risk. Benefits, such as enhanced investment and consumption smoothing, tend to be greater for countries whose financial and institutional development enables them to intermediate capital flows safely. Post-crisis reforms, including the development of macroprudential policies (MPPs), are helping to strengthen the resilience of financial systems including to shocks from capital flows. The Basel III process has improved the quality and level of capital, reduced leverage, and increased liquid asset holdings in financial systems. Drawing on and complementing such international reforms at the national level, robust macroprudential policy frameworks focused on mitigating systemic risk can improve the capacity of a financial system to safely intermediate cross-border flows. Macroprudential frameworks can play an important role over the capital flow cycle, and help members harness the benefits of capital flows. Introducing macroprudential measures (MPMs) preemptively can increase the resilience of the financial system to aggregate shocks, including those arising from capital inflows, and can contain the build-up of systemic vulnerabilities over time, even when such measures are not designed to limit capital flows. While the risks from capital outflows should be handled primarily by macroeconomic policies, a relaxation of MPMs may assist, as long as buffers are in place, in countering financial stresses from outflows. Capital flow liberalization should be supported by broad efforts to strengthen prudential regulation and supervision, including macroprudential policy frameworks. The Fund has two frameworks to help ensure that its advice on MPPs and policies related to capital flows is consistent and tailored to country circumstances. The frameworks (the Macroprudential framework and the Institutional View on capital flows) are consistent in terms of key principles, including avoiding using MPMs and capital flow management measures (CFMs) as a substitute for necessary macroeconomic adjustment. The appropriate classification of measures is important to ensure targeted advice consistent with the two frameworks. The conceptual framework for the assessment of measures laid out in this paper will assist staff in properly identifying MPMs and measures that are designed to limit capital flows and to reduce systemic financial risk stemming from such flows (CFM/MPMs), and thereby ensure the appropriate application of the Fund’s frameworks, so that staff policy advice is consistent and well targeted. The Fund will continue to develop and share expertise in using MPMs, and integrate these findings into its surveillance and technical assistance, which should contribute to building international understanding and experience on these issues.
Increasing Resilience to Large and Volatile Capital Flows
Increasing Resilience to Large and Volatile Capital Flows - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Increasing Resilience to Large and Volatile Capital Flows write by International Monetary Fund. Asia and Pacific Dept. This book was released on 2017-09-13. Increasing Resilience to Large and Volatile Capital Flows available in PDF, EPUB and Kindle. NULL
Staff Guidance Note on Macroprudential Policy
Staff Guidance Note on Macroprudential Policy - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Staff Guidance Note on Macroprudential Policy write by International Monetary Fund. This book was released on 2014-06-11. Staff Guidance Note on Macroprudential Policy available in PDF, EPUB and Kindle. This note provides guidance to facilitate the staff’s advice on macroprudential policy in Fund surveillance. It elaborates on the principles set out in the “Key Aspects of Macroprudential Policy,” taking into account the work of international standard setters as well as the evolving country experience with macroprudential policy. The main note is accompanied by supplements offering Detailed Guidance on Instruments and Considerations for Low Income Countries
Capital Flows at Risk: Taming the Ebbs and Flows
Capital Flows at Risk: Taming the Ebbs and Flows - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Capital Flows at Risk: Taming the Ebbs and Flows write by Mr.R. G Gelos. This book was released on 2019-12-20. Capital Flows at Risk: Taming the Ebbs and Flows available in PDF, EPUB and Kindle. The volatility of capital flows to emerging markets continues to pose challenges to policymakers. In this paper, we propose a new framework to answer critical policy questions: What policies and policy frameworks are most effective in dampening sharp capital flow movements in response to global shocks? What are the near- versus medium-term trade-offs of different policies? We tackle these questions using a quantile regression framework to predict the entire future probability distribution of capital flows to emerging markets, based on current domestic structural characteristics, policies, and global financial conditions. This new approach allows policymakers to quantify capital flows risks and evaluate policy tools to mitigate them, thus building the foundation of a risk management framework for capital flows.
Macroprudential Policy - An Organizing Framework - Background Paper
Macroprudential Policy - An Organizing Framework - Background Paper - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Macroprudential Policy - An Organizing Framework - Background Paper write by International Monetary Fund. Monetary and Capital Markets Department. This book was released on 2011-03-14. Macroprudential Policy - An Organizing Framework - Background Paper available in PDF, EPUB and Kindle. MCM conducted a survey in December 2010 to take stock of international experiences with financial stability and the evolving macroprudential policy framework. The survey was designed to seek information in three broad areas: the institutional setup for macroprudential policy, the analytical approach to systemic risk monitoring, and the macroprudential policy toolkit. The survey was sent to 63 countries and the European Central Bank (ECB), including all countries in the G-20 and those subject to mandatory Financial Sector Assessment Programs (FSAPs). The target list is designed to cover a broad range of jurisdictions in all regions, but more weight is given to economies that are systemically important (see Annex for details). The response rate is 80 percent. This note provides a summary of the survey’s main findings.
