What is macroprudential policy for? Making it safe for central bankers
BNM-BIS conference on “Financial systems and the real economy”, Kuala Lumpur, Malaysia
Most of the agenda is, rightly, devoted to the scientific study of interactions between the financial system and the macroeconomy, and to how policy might be able to provide a more secure base for private economic activity. I am going to step back from that to ask questions about the financial stability policy regimes that are emerging around the world. Do we even have clarity around what ‘macroprudential policy’ is for?