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dc.titleResearch Insights: How Can Macro-Prudential Policy Control the Impact of Cross-Border Bank Flows on Emerging Market Economies?
dc.contributor.authorCuadra, Gabriel
dc.contributor.authorNuguer, Victoria
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.date.available2021-06-10T00:00:00
dc.date.issue2021-06-10T00:00:00
dc.description.abstractAdvanced economies (AEs) transmit economic crisis to Emerging Market Economies (EMEs) through cross-border bank flows, impacting their output, credit, and assets prices. Empirical evidence suggests that the transmission of the crisis from AEs to EMEs is higher in the absence of macro-prudential policy. A macro-prudential policy in the form of a levy on EMEs banks, when credit grows faster than deposits, reduces the propagation of AEs crisis to EMEs: the consumption drop is 12 percent lower, and the reaction of the labor market smoother, so consumers are better off with the policy than without it.
dc.format.extent4
dc.identifier.doihttp://dx.doi.org/10.18235/0003327
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Research-Insights-How-Can-Macro-Prudential-Policy-Control-the-Impact-of-Cross-Border-Bank-Flows-on-Emerging-Market-Economies.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Perspectivas-de-investigacion-Como-puede-la-politica-macroprudencial-controlar-el-impacto-de-los-flujos-bancarios-transfronterizos-en-las-economias-emergentes.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectCredit Growth
dc.subjectFinancial Policy
dc.subjectCapital Flow
dc.subjectFinancial System
dc.subjectFinancial Friction
dc.subjectMacroeconomic Policy
dc.subjectFinancial Stability
dc.subjectEmerging Market
dc.subject.jelcodeG28 - Government Policy and Regulation
dc.subject.jelcodeG21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages
dc.subject.jelcodeE44 - Financial Markets and the Macroeconomy
dc.subject.jelcodeF42 - International Policy Coordination and Transmission
dc.typeCatalogs and Brochures
idb.identifier.pubnumberIDB-CB-00537
idb.operationBK-C1102
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