Research Handbook of Macroprudential Policy
Published on 22. May 2026
Book
Hardback
570 pages
978-1-0353-0620-6 (ISBN)
Description
This forward-looking Research Handbook provides a definitive overview of macroprudential policymaking. It sheds light on the analytical tools and conceptual frameworks that support contemporary financial stability regimes and examines how leading central banks deploy measures from bank capital requirements and housing-credit limits to stress testing.
Leading experts draw on lessons learnt from major financial crises including the 2007-2009 Global Financial Crisis, the 2020 Covid-19 'dash for cash', and the 2023 Silicon Valley Bank crisis, to assess how, and under what conditions, macroprudential instruments succeed and fail. The Research Handbook explores the dynamic interactions between these tools and monetary policy, housing markets, credit cycles and emerging threats such as non-bank finance, crypto, cross-border capital flows and climate risk. Organised into seven thematic sections, the Research Handbook distils international cutting-edge research into practical insights and identifies priorities for further inquiry into how to avert, or better manage, future financial crises.
The Research Handbook of Macroprudential Policy is an excellent resource for scholars and researchers in banking regulation, economics and finance, business and management and public policy. It is also an accessible guide for practitioners, policymakers and regulators looking to make informed decisions on safeguarding financial systemic resilience.
Leading experts draw on lessons learnt from major financial crises including the 2007-2009 Global Financial Crisis, the 2020 Covid-19 'dash for cash', and the 2023 Silicon Valley Bank crisis, to assess how, and under what conditions, macroprudential instruments succeed and fail. The Research Handbook explores the dynamic interactions between these tools and monetary policy, housing markets, credit cycles and emerging threats such as non-bank finance, crypto, cross-border capital flows and climate risk. Organised into seven thematic sections, the Research Handbook distils international cutting-edge research into practical insights and identifies priorities for further inquiry into how to avert, or better manage, future financial crises.
The Research Handbook of Macroprudential Policy is an excellent resource for scholars and researchers in banking regulation, economics and finance, business and management and public policy. It is also an accessible guide for practitioners, policymakers and regulators looking to make informed decisions on safeguarding financial systemic resilience.
Reviews / Votes
'Macroprudential policy is profoundly practical, borne out of the many financial crises in recent decades, but it is also a new field with rigorous modelling frameworks. This research volume gathers authors at the top of their game, shedding light on both. It is a must read for researchers and policymakers alike.' -- Hyun Song Shin, Economic Adviser and Head of the Monetary and Economic Department, Bank for International Settlements 'Aikman and Gai's well-constructed volume will prove indispensable as a resource for research and thinking on the political economy and political science of regimes for financial stability. We know crises are very bad for economic prosperity and political legitimacy, but we still don't know how to incentivise independent authorities to act to make the system resilient without overreaching. This book helps frame an agenda that all but political revolutionaries should support.' -- Paul Tucker, author of Unelected Power, and former central bankerMore details
Series
Language
English
Place of publication
Cheltenham
United Kingdom
Target group
Professional and scholarly
Dimensions
Height: 244 mm
Width: 169 mm
ISBN-13
978-1-0353-0620-6 (9781035306206)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Persons
Edited by David Aikman, Director, the National Institute of Economic and Social Research, UK and Prasanna Gai, Professor of Economics, University of Auckland, New Zealand
Content
Contents
Introduction to R?e?s?e?a?r?c?h? ?H?a?n?d?b?o?o?k? ?o?f? ?M?a?c?r?o?p?r?u?d?e?n?t?i?a?l? ?P?o?l?i?c?y? ?
D?a?v?i?d? ?A?i?k?m?a?n? ?a?n?d? ?P?r?a?s?a?n?n?a? ?G?a?i? ?1
PART I THE OBJECTIVES OF MACROPRUDENTIAL POLICY
1 In search of a macroprudential loss function 8
R?i?c?h?a?r?d? ?B?a?r?w?e?l?l?
2 Making banking safe 27
S?t?e?p?h?e?n? ?G?.? ?C?e?c?c?h?e?t?t?i? ?a?n?d? ?K?e?r?m?i?t? ?L?.? ?S?c?h?o?e?n?h?o?l?t?z?
PART II DEBT DYNAMICS AND FINANCIAL CRISES
3 Aggregate debt servicing and the limit on private credit 54
M?a?t?h?i?a?s? ?D?r?e?h?m?a?n?n?,? ?M?i?k?a?e?l? ?J?u?s?e?l?i?u?s?,? ?a?n?d? ?S?a?r?a?h? ?Q?u?i?n?c?y?
4 The causes and consequences of high household indebtedness: evidence from Korea 81
H?w?a?n?-?K?o?o? ?K?a?n?g? ?a?n?d? ?K?y?e?o?n?g?t?a?e? ?L?e?e?
5 The role of debt in financial crises: lessons from the past 93
P?e?d?r?o? ?D?u?a?r?t?e? ?N?e?v?e?s?
PART III EXPERIENCE WITH MACROPRUDENTIAL TOOLS
6 Has macroprudential policy been effective? How can we know? 113
E?r?l?e?n?d? ?W?.? ?N?i?e?r?
7 Housing and macroprudential policy 131
J?o?h?n? ?M?u?e?l?l?b?a?u?e?r?
8 The effects of mortgage debt limits: lessons and questions from the Irish experience since 2015 178
E?d?w?a?r?d? ?G?a?f?f?n?e?y?,? ?N?i?a?m?h? ?H?a?l?l?i?s?s?e?y?,? ?a?n?d? ?F?e?r?g?a?l? ?M?c?C?a?n?n?
9 Macroprudential policy and capital flows 200
M?a?r?g?a?r?e?t? ?D?a?v?e?n?p?o?r?t?,? ?F?i?l?i?p?a? ?S?a,? ?a?n?d? ?T?o?m?a?s?z? ?W?i?e?l?a?d?e?k?
10 Distributional consequences of borrower-based macroprudential tools 220
J?o?s?e?-?L?u?i?s? ?P?e?y?d?r?o,? ?F?r?a?n?c?e?s?c? ?R?o?d?r?i?g?u?e?z?-?T?o?u?s?,? ?J?a?g?d?i?s?h? ?T?r?i?p?a?t?h?y?,? ?a?n?d? ?A?r?z?u? ?U?l?u?c?
PART IV USEFUL MODELS
11 Outlook-at-risk 242
Nina Boyarchenko
12 Multiple equilibria? Don't panic! - a hitchhiker's guide to global games 261
Kartik Anand and Philipp J. Koenig
13 Stress testing tools: where we stand and where to go? 296
Claudio Barbieri, Grzegorz Halaj, and Christoffer Kok
14 Towards a macroeconomic model of banking crises 318
Daisuke Ikeda and Hidehiko Matsumoto
15 Bank capital requirements and bank lending: from theory to empirics to policy 343
Saleem Bahaj, Chiara Lattanzio, and Frederic Malherbe
PART V GOVERNANCE ARRANGEMENTS AND COORDINATION WITH OTHER MACROECONOMIC POLICIES
16 Macroprudential governance: lessons from policies to mitigate housing market risks 369
Ryan Banerjee and Philip Wooldridge
17 Interaction of macroprudential and monetary policies: practice ahead of theory 384
Thibaut Duprey, Yaz Terajima, and Jing Yang
PART VI SYSTEMIC RISK OUTSIDE THE BANKING SYSTEM
18 Shadow banking 418
Nathaniel Butler Blondel and Guillaume Plantin
19 Macroprudential policy, monetary policy and non-bank financial intermediation 439
Margherita Giuzio, Sujit Kapadia, Christoph Kaufmann, Manuela Storz, and Christian Weistroffer
20 US life insurers and systemic risk 475
Nathan Foley-Fisher, Nathan Heinrich, and Stephane Verani
PART VII FRONTIER ISSUES
21 Climate change, systemic risk, and macroprudential policy 500
Paul Hiebert
22 Climate risks in US housing and mortgage markets 514
Toan Phan
23 Cryptocurrencies and decentralised finance: functions and financial stability implications 522
Matteo Aquilina, Giulio Cornelli, Jon Frost, and Leonardo Gambacorta
Index 546
Introduction to R?e?s?e?a?r?c?h? ?H?a?n?d?b?o?o?k? ?o?f? ?M?a?c?r?o?p?r?u?d?e?n?t?i?a?l? ?P?o?l?i?c?y? ?
D?a?v?i?d? ?A?i?k?m?a?n? ?a?n?d? ?P?r?a?s?a?n?n?a? ?G?a?i? ?1
PART I THE OBJECTIVES OF MACROPRUDENTIAL POLICY
1 In search of a macroprudential loss function 8
R?i?c?h?a?r?d? ?B?a?r?w?e?l?l?
2 Making banking safe 27
S?t?e?p?h?e?n? ?G?.? ?C?e?c?c?h?e?t?t?i? ?a?n?d? ?K?e?r?m?i?t? ?L?.? ?S?c?h?o?e?n?h?o?l?t?z?
PART II DEBT DYNAMICS AND FINANCIAL CRISES
3 Aggregate debt servicing and the limit on private credit 54
M?a?t?h?i?a?s? ?D?r?e?h?m?a?n?n?,? ?M?i?k?a?e?l? ?J?u?s?e?l?i?u?s?,? ?a?n?d? ?S?a?r?a?h? ?Q?u?i?n?c?y?
4 The causes and consequences of high household indebtedness: evidence from Korea 81
H?w?a?n?-?K?o?o? ?K?a?n?g? ?a?n?d? ?K?y?e?o?n?g?t?a?e? ?L?e?e?
5 The role of debt in financial crises: lessons from the past 93
P?e?d?r?o? ?D?u?a?r?t?e? ?N?e?v?e?s?
PART III EXPERIENCE WITH MACROPRUDENTIAL TOOLS
6 Has macroprudential policy been effective? How can we know? 113
E?r?l?e?n?d? ?W?.? ?N?i?e?r?
7 Housing and macroprudential policy 131
J?o?h?n? ?M?u?e?l?l?b?a?u?e?r?
8 The effects of mortgage debt limits: lessons and questions from the Irish experience since 2015 178
E?d?w?a?r?d? ?G?a?f?f?n?e?y?,? ?N?i?a?m?h? ?H?a?l?l?i?s?s?e?y?,? ?a?n?d? ?F?e?r?g?a?l? ?M?c?C?a?n?n?
9 Macroprudential policy and capital flows 200
M?a?r?g?a?r?e?t? ?D?a?v?e?n?p?o?r?t?,? ?F?i?l?i?p?a? ?S?a,? ?a?n?d? ?T?o?m?a?s?z? ?W?i?e?l?a?d?e?k?
10 Distributional consequences of borrower-based macroprudential tools 220
J?o?s?e?-?L?u?i?s? ?P?e?y?d?r?o,? ?F?r?a?n?c?e?s?c? ?R?o?d?r?i?g?u?e?z?-?T?o?u?s?,? ?J?a?g?d?i?s?h? ?T?r?i?p?a?t?h?y?,? ?a?n?d? ?A?r?z?u? ?U?l?u?c?
PART IV USEFUL MODELS
11 Outlook-at-risk 242
Nina Boyarchenko
12 Multiple equilibria? Don't panic! - a hitchhiker's guide to global games 261
Kartik Anand and Philipp J. Koenig
13 Stress testing tools: where we stand and where to go? 296
Claudio Barbieri, Grzegorz Halaj, and Christoffer Kok
14 Towards a macroeconomic model of banking crises 318
Daisuke Ikeda and Hidehiko Matsumoto
15 Bank capital requirements and bank lending: from theory to empirics to policy 343
Saleem Bahaj, Chiara Lattanzio, and Frederic Malherbe
PART V GOVERNANCE ARRANGEMENTS AND COORDINATION WITH OTHER MACROECONOMIC POLICIES
16 Macroprudential governance: lessons from policies to mitigate housing market risks 369
Ryan Banerjee and Philip Wooldridge
17 Interaction of macroprudential and monetary policies: practice ahead of theory 384
Thibaut Duprey, Yaz Terajima, and Jing Yang
PART VI SYSTEMIC RISK OUTSIDE THE BANKING SYSTEM
18 Shadow banking 418
Nathaniel Butler Blondel and Guillaume Plantin
19 Macroprudential policy, monetary policy and non-bank financial intermediation 439
Margherita Giuzio, Sujit Kapadia, Christoph Kaufmann, Manuela Storz, and Christian Weistroffer
20 US life insurers and systemic risk 475
Nathan Foley-Fisher, Nathan Heinrich, and Stephane Verani
PART VII FRONTIER ISSUES
21 Climate change, systemic risk, and macroprudential policy 500
Paul Hiebert
22 Climate risks in US housing and mortgage markets 514
Toan Phan
23 Cryptocurrencies and decentralised finance: functions and financial stability implications 522
Matteo Aquilina, Giulio Cornelli, Jon Frost, and Leonardo Gambacorta
Index 546