Externalities and Macroprudential Policy

By Gianni De Nicolò, Giovanni Favara, Lev Ratnovski. 2012

147 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/88bff0d6fa91a413e432197be18140b3fd20db48

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Citations in the corpus

The Use and Effectiveness of Macroprudential Policies: New Evidence (2015, unknown): “4 Related, the analytical foundations of macroprudential policies are still to be efined more precisely (see Hanson et al., 2011; De Nicolò et al., 2012; Freixas et al., 015, for further analyses and discussions).”
Policies for Macrofinancial Stability: How to Deal with Credit Booms (2012, background): “In addition, externalities driven by strategic complementarities (such as cycles in collateral values) may lead banks to take excessive or correlated risks during the upswing of a financial cycle (De Nicolò, Favara, and Ratnovski, 2012).”
What do we know about the effects of macroprudential policy (2018, unknown): “The literature distinguishes three main drivers of such risk externalities (De Nicolò et al., 2012): strategic complementarities, i.e. strategic interactions of financial institutions that cause the build-up of vulnerabilities during the expansionary phase of the financial cycle (herding); fire…”
The Regulatory Responses to the Global Financial Crisis: Some Uncomfortable Questions (2014, background): “…(alone) does not assure a safe financial system (see Brunnermeier, et al., 2009, and Osiński, Seal and Hoogduin, 2013, for a general discussion and De Nicolò et al., 2012, for an analytical review of a macroprudential versus a microprudential perspective on financial stability and regulation).”
Finance, climate-change and radical uncertainty: Towards a precautionary approach to financial policy (2021, background): “Instead of regulating the soundness of individual institutions, macroprudential policy focuses on the stability of the system as a whole by mitigating the systemic financial risks to the macroeconomy through pre-emptive interventions (De Nicoló et al., 2012; Favara and Ratnovski, 2014).”
The Concept of Systemic Risk (2014, methodology): “According to De Nicolò et al. (2012) negative externalities caused by systemic risk include the following effects.”
Macro-Prudential Policies to Mitigate Financial System Vulnerabilities (2013, background): “As financial institutions try to mimic each other‘s strategy—knowing there is safety in numbers—there is an increase in the systemic vulnerabilities of the financial system (De Nicolò et al, 2012).”