While the recent emphasis on macroprudential policy reflects the inadequacies of traditional approaches to macroeconomic policy and financial regulation revealed by the financial crisis, the paper points out that there is as yet no clear consensus on the scope or precise targets of macroprudential policy. The paper identifies, however, two key elements: monitoring, analysing and seeking to mitigate emerging “conjunctural” risks (e.g., an excessive build-up of leverage or debt); and enhancing the resilience of the financial system in the face of these risks.
Published on
16 September 2011
Press release