Dampening Global Financial Shocks: Can Macroprudential Regulation Help (More than Capital Controls)? »
Journal Issue
Volume/Issue: 2020/106
Series: IMF Working Papers
Author(s): Katharina Bergant , Francesco Grigoli , Niels-Jakob Hansen , and Damiano Sandri
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 26 June 2020
DOI: http://dx.doi.org/10.5089/9781513547763.001
ISBN: 9781513547763
Keywords: Balance of payments, Financial crises, Monetary policy, Central banks, Interest rate policy, Macroprudential policies, capital controls., WP, capital control, VIX
We show that macroprudential regulation can considerably dampen the impact of global financial shocks on emerging markets. More specifically, a tighter level of regulation reduces the sensitivity of GDP growth to V...