Jump to ContentJump to Main Navigation
The Great RecessionLessons for Central Bankers$
Users without a subscription are not able to see the full content.

Jacob Braude, Zvi Eckstein, Stanley Fischer, and Karnit Flug

Print publication date: 2013

Print ISBN-13: 9780262018340

Published to MIT Press Scholarship Online: January 2015

DOI: 10.7551/mitpress/9780262018340.001.0001

Show Summary Details
Page of

PRINTED FROM MIT PRESS SCHOLARSHIP ONLINE (www.mitpress.universitypressscholarship.com). (c) Copyright The MIT Press, 2017. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in MITSO for personal use (for details see http://www.mitpress.universitypressscholarship.com/page/privacy-policy).date: 15 December 2017

Central Banks, Macroprudential Policy, and the Spanish Experience

Central Banks, Macroprudential Policy, and the Spanish Experience

Chapter:
(p.99) 4 Central Banks, Macroprudential Policy, and the Spanish Experience
Source:
The Great Recession
Author(s):

Enrique Alberola

Carlos Trucharte

Juan Luís Vega

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262018340.003.0005

Macroprudential policy, its toolbox and interactions with other policies are not completely established yet. Spain's ten-year experience with its dynamic provision provides a key reference. The analysis shows that dynamic provisions have proved useful to mitigate —to a limited extent— the buildup of risks and, above all, to provide substantial loss absorbency capacity to the financial institutions. This suggests that it could be an important macroprudential tool, if complemented by, and consistent with, the rest of policies. While there is a higher awareness of the contribution of monetary policy to financial stability, its role is in practice limited. The case of the euro area is telling. Macro-financial imbalances developed in sectors where financial integration was low and hence the effects were confined to the domestic economies. The asymmetry between a supranational monetary policy plus macroprudential surveillance and domestic implementation of macroprudential policies raises a set of issues which are worth exploring.

Keywords:   Macroprudential policy, Dynamic provision, Central banks, Spain

MIT Press Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.