IMF ‘cookbook' paper outlines basic recipe for macro-pru policy
For macro-prudential policy to work, the ex ante benefits should be higher than the costs, a new International Monetary Fund paper concludes – adding that in accordance with "a very basic recipe", policy-makers should add country-specific flavours and garnishes that reflect their preferences.
The paper, entitled Evaluating the Net Benefits of Macroprudential Policy: A Cookbook, written by Nicolas Arregui, Jaromír Beneš, Ivo Krznar, Srobona Mitra and Andre Oliveira Santos, proposes a simple, new
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