Global Financial Spillovers and Coordination of Macroprudential Policies

Research output: Chapter or section in a book/report/conference proceedingChapter in a published conference proceeding


This paper examines the effectiveness of macroprudential policies in fostering financial stability within and across countries. We use a New Keynesian two-country DSGE model á la Gertler and Karadi (2011) with cross border loans between an emerging market (EM) and an advanced economy (AE). We compare three scenarios, the implementation of capital requirements in the AE, a levy tax on cross border loans in the EM and a de facto coordination of policies in both countries. We show when financial stability authorities conduct macroprudential policies across countries between the core and periphery, the results are highly effective in mitigating financial shocks in both jurisdictions, resulting in substantial welfare gains.
Original languageEnglish
Title of host publicationGlobal Financial Spillovers and Coordination of Macroprudential Policies
Number of pages52
Publication statusPublished - 19 Dec 2018
EventRoyal Economic Society 2018: PhD Meetings - London, London, UK United Kingdom
Duration: 18 Dec 201819 Dec 2018


ConferenceRoyal Economic Society 2018
Country/TerritoryUK United Kingdom
Internet address


  • macroprudential policies
  • DSGE models
  • coordination of policies

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)


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