Macroprudential Policy: What We’ve Learned, Don’t Know, and Need to Do

Abstract

<jats:p> Over the last decade, macroprudential policy has made important advances and become more widely used. We have a better understanding of its goals and tools, and are accumulating evidence that it can be effective on its direct targets, albeit often with unintended leakages and spillovers. There has been less progress, however, in terms of understanding: the ramifications of these leakages and spillovers, the optimal calibration of various tools, and how to identify the next risks as the financial system evolves. A top priority is better understanding the new vulnerabilities developing as risks shift outside the perimeter of existing regulations. </jats:p>