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Brazil, Korea: Two Tales of a Macroprudential Regulation

Otaviano Canuto's picture

The pervasiveness and relevance of asset price booms and busts in modern economies has now been fully acknowledged. So has the case for combining prudential regulation and monetary policy in the complementary pursuit of financial and macroeconomic stability.

Resource-Backed Investment Finance in Least Developed Countries

Otaviano Canuto's picture

In recent decades, Least Developed Countries (LDCs) have been using their natural-resources as collateral to access sources of finance for investment, countervailing the barriers they face when accessing conventional bank lending and capital markets.  Depending on whom you ask, such financing models have been alternately vilified and sanctified in the global development debate.

Marrying Monetary Policy and Financial Regulation

Otaviano Canuto's picture


If the global financial crisis -- and the events that led up to it -- have taught us anything, it is,“No complacency with asset price booms”. We know first hand the dire consequences of bubbles, so it is clear monetary policy makers can no longer passively observe the evolution of asset prices. If an economy is to pursue macroeconomic and financial stability, they should coordinate with financial supervisors – in an economic marriage of convenience – to ensure financial regulation and monetary policies are complementary, and implemented in an articulated way.