Macro-financial Stability Policy in a Globalised World: Lessons from International Experience

Since at least the Great Financial Crisis, authorities around the world have increasingly relied on macroprudential policy to help secure financial stability and complement monetary policy as an integral element of a broader macro-financial stability framework. In today's interconnected global financial system, policy actions taken by the major advanced economies can have spillovers on the rest of the world through their impact on capital flows and exchange rates, potentially generating vulnerabilities across borders. Conversely, in emerging market economies, macroprudential policy as well as foreign exchange intervention and/or capital flow management policy can help mitigate the corresponding impact. This can in turn generate spillbacks on advanced economies spillbacks that have become more sizeable as the emerging market economies' heft in the world has grown. Yet little is known about these interactions.

The contents of this book are based on a conference held on 2628 May 2021 and jointly hosted by the Monetary Authority of Singapore (MAS) and the Bank for International Settlements (BIS). It aims to contribute to existing literature on macro-financial policymaking by providing an overall conceptual framework and documenting the latest global trends and country experiences. In particular, it highlights the role of international spillovers and spillbacks, paying particular attention to emerging market economies. This book is essential reading for academics, graduate students and economic professionals. It can also serve as a handbook for policymakers at central banks, regulatory authorities and other government agencies tasked with designing and implementing macroprudential or more generally macro-financial stability policies. The book will also be of interest to researchers at international organisations.

Contents:

• About the Editors
• About the Contributors
• Welcome Remarks: The Quest for an Integrated Macro-Policy Framework (Ravi Menon)
• Welcome Remarks: Historical Evolution of Macro-Financial Stability Frameworks and a Search of a New Conceptual Framework (Agustin Carstens)
• Macro-Financial Stability Frameworks: Experience and Challenges (Claudio Borio, Ilhyock Shim and Hyun Song Shin)
• Macro-Financial Stability Frameworks: Experience and Challenges: A Discussion (Linda Goldberg)
• What Happens in Vegas Does Not Stay in Vegas (Anil K Kashyap)
• Macroprudential Policies and the COVID-19 Pandemic: Risks and Challenges for Emerging Markets (Sebastian Edwards)
• Macroprudential Policies and the COVID-19 Pandemic: Risks and Challenges for Emerging Markets: A Discussion (Eswar Prasad)
• Macroprudential Policy during COVID-19: The Role of Policy Space (Katharina Bergant and Kristin Forbes)
• Macroprudential Policy during COVID-19: The Role of Policy Space: A Discussion (Valentina Bruno)
• Macro-Financial Policy in an International Financial Centre: The UK Experience Since the Global Financial Crisis (Thorsten Beck, Simon Lloyd, Dennis Reinhardt and Rhiannon Sowerbutts)
• Macro-Financial Policy in an International Financial Centre: The UK Experience Since the Global Financial Crisis: A Discussion (Paul Tucker)
• Sweden's Experience of Deploying Monetary and Macroprudential Policies (Stefan Ingves and Johan Grip)
• Sweden's Experience of Deploying Monetary and Macroprudential Policies: A Discussion (Charles Bean)
• The 'Twin-Pillar' Framework of Monetary and Macroprudential Policies in China (Yiping Huang and Tingting Lv)
• The 'Twin-Pillar' Framework of Monetary and Macroprudential Policies in China: A Discussion (Yi Huang)
• Timely, Sustained and Effective Macroprudential Policy: Exploring the Political Economy of Hong Kong's

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