There are reasons to suggest the Chilean authorities will need to “take determined action” towards implementing a macro-prudential policy framework, according to the central bank governor and director of financial policy. Rodrigo Vergara and Claudio Raddatz summarise the status quo of macro-prudential policy in a working paper published this month. They stress the evolving nature of the field.

“Although one can still question conceptually the need to have a macro-prudential framework in place