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Improving macroprudential regulation.
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Our analysis suggests that macroprudential policies have improved external balances, dampened financial amplification channels, and reduced the sensitivity of the Turkish economy to capital flows.
"The best way to safeguard financial stability and improve the balance between economic and financial risk taking is to put in place policies that enhance the transmission of monetary policy to the real economy – thus promoting economic risk taking – and address financial excesses through well-designed macroprudential measures".
Improve health, improve productivity.
And we must address financial excesses through better micro- and macroprudential policies.
That's probably right, though that's quite the bank shot route to sensible macroprudential policy; much better and more direct to simply tighten lending standards.
Macroprudential protects the system.
Cue "macroprudential" policy.
A framework for macroprudential regulation that defines systemic risk and macroprudential policy, describes macroprudential tools, and surveys the effectiveness of existing macroprudential regulation.
Instead it has relied on macroprudential policies.
Such macroprudential policies are a good idea everywhere.
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