Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 26, 2023 erstellt
Description:
We investigate the effectiveness of macroprudential tools and their interaction with monetary policy using a comprehensive cross-country database of 37 countries. For that purpose, we calculate Taylor rules and macroprudential policy indexes for each country, combining them in fixed effects and dynamic panel data regressions. Our results indicate that macroprudential policies have an asymmetric effect on banks' risk-taking with more pronounced effects when a diverse set of instruments is used. However, tightening measures are less effective in enhancing financial stability when a country is already in a restrictive monetary policy stance. This result is associated with the fact that, in such stances, these measures tend to reduce banks' profitability, thereby compromising financial stability. The results bring new evidence of the possible conflict between monetary and macroprudential policies when dealing with systemic risk