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Journal of Banking & Finance Vol. 169 2024

Effects of macroprudential policy: Evidence from over 6000 estimates

Juliana Araujo1; Manasa Patnam1; Adina Popescu1; Fabián Valencia1; Weijia Yao2

1 International Monetary Fund · 2 Swiss Re (Switzerland)

Abstract

This paper builds a novel database on the effects of macroprudential policy drawing from 58 empirical studies, comprising over 6000 results on a wide range of instruments and outcome variables. It encompasses information on statistical significance, standardized magnitudes, and other characteristics of the estimates. Using meta-analysis techniques, the paper estimates average effects to find (i) statistically significant effects on credit, but with considerable heterogeneity across instruments; (ii) weaker and more imprecise effects on house prices; (iii) quantitatively stronger effects in emerging markets and among studies using micro-level data; and (iv) statistically significant evidence of leakages and spillovers. Other findings include relatively stronger impacts for tightening than loosening actions and negative effects on economic activity in the near term.

DOI
10.1016/j.jbankfin.2024.107273
Volume
169
Pages
107273
Language
en
Sources
crossref openalex bibtex:phds-export.bib

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