<p><em><a href="http://rads.stackoverflow.com/amzn/click/0470499346" rel="nofollow">Restoring Financial Stability</a></em>, a series of essays focusing on policies to address the issues that led to the most recent crisis, edited by Viral Acharya and Matthew Richardson, is good and accessible.</p>

CC BY-SA 3.0
2015-04-13T14:59:10.130Z
2015-04-13T14:59:10.130Z
dismalscience
<p>A good historical survey is "<a href="http://financialresearch.gov/working-papers/files/OFRwp0008_ElliottFeldbergLehnert_AmericanCyclicalMacroprudentialPolicy.pdf" rel="nofollow">The History of Cyclical Macroprudential Policy in the United States</a>" by Elliot, Feldberg, and Lehnert:</p>

<blockquote>
  <p>Since the financial crisis of 2007-2009, policymakers have debated the need
  for a new toolkit of cyclical “macroprudential” policies to constrain the
  build-up of risks in financial markets, for example, by dampening credit-fueled
  asset bubbles. These discussions tend to ignore America’s long and
  varied history with many of the instruments under consideration to smooth
  the credit cycle, presumably because of their sparse usage in the last three
  decades. We provide the first comprehensive survey and historic narrative
  of these efforts. The tools whose background and use we describe include
  underwriting standards, reserve requirements, deposit rate ceilings, credit
  growth limits, supervisory pressure, and other financial regulatory policy
  actions. The contemporary debates over these tools highlighted a variety of
  concerns, including “speculation,” undesirable rates of inflation, and high
  levels of consumer spending, among others. Ongoing statistical work
  suggests that macroprudential tightening lowers consumer debt but
  macroprudential easing does not increase it.</p>
</blockquote>

CC BY-SA 3.0
2015-04-13T14:57:12.393Z
2015-04-13T14:57:12.393Z
dismalscience
<p>It's not really introductory in the sense that it focusses on what Macro-Prodential means (reducing risk at the cost of efficiency), but rather applied: <a href="http://pages.stern.nyu.edu/~tphilipp/papers/MartinPhilippon.pdf" rel="nofollow">Martin and Philippon (2014)</a> analyze the great recession in Europe and simulate to what end more macruprudential policies would have ameliorated the situation.</p>

<blockquote>
  <p>We provide a first comprehensive account of the dynamics of Eurozone
  countries from the creation of the Euro to the Great recession. We
  model each country as an open economy within a monetary union and
  analyze the dynamics of private leverage, fiscal policy and spreads.
  Our parsimonious model can replicate the time-series for nominal GDP,
  employment, and net exports of Eurozone countries between 2000 and
  2012. We then ask how periphery countries would have fared with: (i) more conservative fiscal policies; (ii) macro-prudential tools to
  control private leverage; (iii) a central bank acting earlier to limit
  sovereign spreads; and (iv) the possibility to recoup the
  competitiveness they lost in the boom.</p>
</blockquote>

CC BY-SA 3.0
2015-04-13T11:56:16.280Z
2015-04-13T12:04:41.917Z
2015-04-13T12:04:41.917Z
FooBar
<p>I am looking for some good introductory papers or possible books on macroprudential regulation. </p>

CC BY-SA 3.0
2015-04-13T11:53:27.540Z
Let's keep it again again at one paper/book per post, so that users can vote on the individual suggestions.
FooBar
CC BY-SA 3.0
2015-04-14T19:01:25.933Z
In order for this question to be as helpful as the answers it has received, I believe you should include a _definition_ of "macroprudential regulation" , even if it would be only a working one. One-liner answers are not in the SE spirit -nor are one-liner questions. What are the  characteristics of "macroprudential regulation" that distinguishes  it from any other regulation,as you understand it or as you have found in your initial readings?
Alecos Papadopoulos
<macroeconomics><reference-request><regulation>
Books/Papers on Macroprudential Regulation
Thorst
# Books/Papers on Macroprudential Regulation

(Asked by: username_0 on 2015-04-13)

I am looking for some good introductory papers or possible books on macroprudential regulation.

**Tags:** macroeconomics, reference-request, regulation

> **Comments:**
> **username_1**: Let's keep it again again at one paper/book per post, so that users can vote on the individual suggestions.  
> **username_2**: In order for this question to be as helpful as the answers it has received, I believe you should include a _definition_ of "macroprudential regulation" , even if it would be only a working one. One-liner answers are not in the SE spirit -nor are one-liner questions. What are the  characteristics of "macroprudential regulation" that distinguishes  it from any other regulation,as you understand it or as you have found in your initial readings?  

---

## 3 answers

### Answer by username_1 on 2015-04-13. Score: 2 | Accepted answer

It's not really introductory in the sense that it focusses on what Macro-Prodential means (reducing risk at the cost of efficiency), but rather applied: [Martin and Philippon (2014)](http://pages.stern.nyu.edu/~tphilipp/papers/MartinPhilippon.pdf) analyze the great recession in Europe and simulate to what end more macruprudential policies would have ameliorated the situation.

> We provide a first comprehensive account of the dynamics of Eurozone
> countries from the creation of the Euro to the Great recession. We
> model each country as an open economy within a monetary union and
> analyze the dynamics of private leverage, fiscal policy and spreads.
> Our parsimonious model can replicate the time-series for nominal GDP,
> employment, and net exports of Eurozone countries between 2000 and
> 2012. We then ask how periphery countries would have fared with: (i) more conservative fiscal policies; (ii) macro-prudential tools to
> control private leverage; (iii) a central bank acting earlier to limit
> sovereign spreads; and (iv) the possibility to recoup the
> competitiveness they lost in the boom.


---

### Answer by username_3 on 2015-04-13. Score: 2

*[Restoring Financial Stability](http://rads.stackoverflow.com/amzn/click/0470499346)*, a series of essays focusing on policies to address the issues that led to the most recent crisis, edited by Viral Acharya and Matthew Richardson, is good and accessible.


---

### Answer by username_3 on 2015-04-13. Score: 2

A good historical survey is "[The History of Cyclical Macroprudential Policy in the United States](http://financialresearch.gov/working-papers/files/OFRwp0008_ElliottFeldbergLehnert_AmericanCyclicalMacroprudentialPolicy.pdf)" by Elliot, Feldberg, and Lehnert:

> Since the financial crisis of 2007-2009, policymakers have debated the need
> for a new toolkit of cyclical “macroprudential” policies to constrain the
> build-up of risks in financial markets, for example, by dampening credit-fueled
> asset bubbles. These discussions tend to ignore America’s long and
> varied history with many of the instruments under consideration to smooth
> the credit cycle, presumably because of their sparse usage in the last three
> decades. We provide the first comprehensive survey and historic narrative
> of these efforts. The tools whose background and use we describe include
> underwriting standards, reserve requirements, deposit rate ceilings, credit
> growth limits, supervisory pressure, and other financial regulatory policy
> actions. The contemporary debates over these tools highlighted a variety of
> concerns, including “speculation,” undesirable rates of inflation, and high
> levels of consumer spending, among others. Ongoing statistical work
> suggests that macroprudential tightening lowers consumer debt but
> macroprudential easing does not increase it.


---

