Effects of Macroprudential Policy: Evidence from Over 6,000 Estimates

49 Pages Posted: 18 Jun 2020

See all articles by Juliana Araujo

Juliana Araujo

International Monetary Fund (IMF)

Manasa Patnam

International Monetary Fund (IMF)

Adina Popescu

International Monetary Fund (IMF)

Fabián Valencia

International Monetary Fund (IMF)

Weija Yao

International Monetary Fund

Multiple version iconThere are 2 versions of this paper

Date Written: May 2020

Abstract

This paper builds a novel database on the effects of macroprudential policy drawing from 58 empirical studies, comprising over 6,000 results on a wide range of instruments and outcome variables. It encompasses information on statistical significance, standardized magnitudes, and other characteristics of the estimates. Using meta-analysis techniques, the paper estimates average effects to find i) statistically significant effects on credit, but with considerable heterogeneity across instruments; ii) weaker and more imprecise effects on house prices; iii) quantitatively stronger effects in emerging markets and among studies using micro-level data; and iii) statistically significant evidence of leakages and spillovers. Other findings include relatively stronger impacts for tightening than loosening actions and negative effects on economic activity in the near term.

Keywords: Systemically important financial institutions, Financial crises, Reserve requirements, Domestic credit, Credit demand, Macroprudential Policy, financial stability, Meta-analysis., WP, outcome variable, average effect, MPM, micro-level, Claessens

JEL Classification: E20, G28, F36, G21, E52, E01, E63, K2

Suggested Citation

Araujo, Juliana and Patnam, Manasa and Popescu, Adina and Valencia, Fabian V. and Yao, Weija, Effects of Macroprudential Policy: Evidence from Over 6,000 Estimates (May 2020). IMF Working Paper No. 20/67, Available at SSRN: https://ssrn.com/abstract=3630156

Juliana Araujo (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Manasa Patnam

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Adina Popescu

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Fabian V. Valencia

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Weija Yao

International Monetary Fund ( email )

Kuwait

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
36
Abstract Views
145
PlumX Metrics