Lyu, Juyi, Le, Vo ORCID: https://orcid.org/0000-0003-3374-9694, Meenagh, David ORCID: https://orcid.org/0000-0002-9930-7947 and Minford, Anthony ORCID: https://orcid.org/0000-0003-2499-935X 2021. Macroprudential regulation in the post-crisis era: has the pendulum swung too far? Journal of International Financial Markets, Institutions and Money 74 , 101381. 10.1016/j.intfin.2021.101381 |
PDF
- Accepted Post-Print Version
Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (903kB) |
Abstract
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.
Item Type: | Article |
---|---|
Date Type: | Publication |
Status: | Published |
Schools: | Business (Including Economics) Advanced Research Computing @ Cardiff (ARCCA) |
Publisher: | Elsevier |
ISSN: | 1042-4431 |
Date of First Compliant Deposit: | 6 July 2021 |
Date of Acceptance: | 2 July 2021 |
Last Modified: | 22 Nov 2024 12:30 |
URI: | https://orca.cardiff.ac.uk/id/eprint/142348 |
Citation Data
Cited 2 times in Scopus. View in Scopus. Powered By Scopus® Data
Actions (repository staff only)
Edit Item |