Macroprudential policy: what instruments can be effective?

The concept of “macroprudential” financial policy, long advocated from Basel by the Bank for International Settlements, has gained prominence in the wake of recent financial turmoil, and most large jurisdictions have created new institutions that focus on the macroprudential level as opposed to traditional, “micro” prudential supervision of individual financial institutions. This includes the European Systemic Risk Board, the US Financial Stability Oversight Council, and various new bodies at the level of individual member states. These new institutions, however, will ultimately be only as effective as the instruments they wield. Intriguingly, the debate on macroprudential policy instruments is still at an early stage. To explore it further, this session presented new analysis from the Bank of England as well as a perspective from one of the Eurosystem’s National Central Banks.

Speakers

David Aikman has overall responsibility for advising the Bank of England’s newly formed Financial Policy Committee on macroprudential policy tools. His team also leads for the Bank on prudential policy matters in Basel, at the European Systemic Risk Board and in other EU-level discussions. He joined the Bank in 2003 and has worked there in macroeconomic forecasting and analysis. He holds a PhD in Macroeconomics from the University of Warwick.

Stijn Ferrari joined the National Bank of Belgium in 2009 and works there in the Prudential Policy and Financial Stability Department. In this capacity he participates in several international working groups on macroprudential policy instruments. He holds an MSc in Advanced Studies in Economics and a PhD in Economics from Katholieke Universiteit Leuven.

Chair - Nicolas Véron, Senior Fellow, Bruegel

Event materials

Event summary here

Practical details

• Venue: Bruegel, Rue de la Charité 33, 1210 Bruxelles
• Time: 6 March 2013, 8:15am - 10:00am
• Contact: matilda.sevon[at]bruegel.org