Bank for International Settlements
Institutional Affiliation: Bank for International Settlements
Information about this author at RePEc
NBER Working Papers and Publications
|September 2018||The Costs of Macroprudential Policy|
with Björn Richter, Moritz Schularick: w24989
Central banks increasingly rely on macroprudential measures to manage the financial cycle. However, the effects of such policies on the core objectives of monetary policy to stabilise output and inflation are largely unknown. In this paper, we quantify the effects of changes in maximum loan-to-value (LTV) ratios on output and inflation. We rely on a narrative identification approach based on detailed reading of policy-makers’ objectives when implementing the measures. We find that over a four year horizon, a 10 percentage point decrease in the maximum LTV ratio leads to a 1.1% reduction in output. As a rule of thumb, the impact of a 10 percentage point LTV tightening can be viewed as roughly comparable to that of a 25 basis point increase in the policy rate. However, the effects are imprec...
Published: Björn Richter & Moritz Schularick & Ilhyock Shim, 2019. "The costs of macroprudential policy," Journal of International Economics, . citation courtesy of
|June 2018||The Costs of Macroprudential Policy|
with Björn Richter, Moritz Schularick
in NBER International Seminar on Macroeconomics 2018, Jordi Galí and Kenneth West, organizers
|December 2013||Can Non-Interest Rate Policies Stabilize Housing Markets? Evidence from a Panel of 57 Economies|
with Kenneth N. Kuttner: w19723
Using data from 57 countries spanning more than three decades, this paper investigates the effectiveness of nine non-interest rate policy tools, including macroprudential measures, in stabilizing house prices and housing credit. In conventional panel regressions, housing credit growth is significantly affected by changes in the maximum debt-service-to-income (DSTI) ratio, the maximum loan-to-value ratio, limits on exposure to the housing sector and housing-related taxes. But only the DSTI ratio limit has a significant effect on housing credit growth when we use mean group and panel event study methods. Among the policies considered, a change in housing-related taxes is the only policy tool with a discernible impact on house price appreciation.
Published: Kenneth N. Kuttner & Ilhyock Shim, 2016. "Can non-interest rate policies stabilize housing markets? Evidence from a panel of 57 economies," Journal of Financial Stability, . citation courtesy of