Arbeitspapier
Macroprudential regulation in the post-crisis era: Has the pendulum swung too far?
This paper presents an institutional model to investigate the cooperation between a government and a central bank. The former selects the monetary policy and then delegates the organization of macroprudential policy to the latter. Their policy stances are the result of sequential constrained utility maximization. Using indirect inference, we find a set of coefficients that can capture the UK policy stances for 1993-2016. This suggests post-crisis regulation has been overly intrusive. Finally, we show that this regulatory dilemma can be avoided by committing to a highly stabilizing monetary regime that uses QE extensively.
- Language
-
Englisch
- Bibliographic citation
-
Series: Cardiff Economics Working Papers ; No. E2021/6
- Classification
-
Wirtschaft
Monetary Policy
Central Banks and Their Policies
Financial Institutions and Services: Government Policy and Regulation
- Subject
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Bank regulation
Financial stability
Monetary policy
Public choice theory
- Event
-
Geistige Schöpfung
- (who)
-
Lyu, Juyi
Le, Vo Phuong Mai
Meenagh, David
Minford, Patrick
- Event
-
Veröffentlichung
- (who)
-
Cardiff University, Cardiff Business School
- (where)
-
Cardiff
- (when)
-
2021
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Lyu, Juyi
- Le, Vo Phuong Mai
- Meenagh, David
- Minford, Patrick
- Cardiff University, Cardiff Business School
Time of origin
- 2021
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