Monetary policy in a world with macroprudential policy, Speech by Mr Jaime Caruana, General Manager of the BIS, at the SAARCFINANCE Governors’ Symposium 2011, Kerala, 11 June 2011.
“In what follows, I will define macroprudential policy as the use of primarily prudential tools to limit system-wide financial risk, and so prevent disruption to key financial services and the economy. Thus, macroprudential policy is defined by its aim (limiting system-wide financial risk), the scope of analysis (the financial system as a whole and its interactions with the real economy), a set of powers and instruments and their governance (prudential tools and those specifically assigned to macroprudential authorities).”
