02055cas a2200241 a 4500 AALejournalIMF014853 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484358115 1018-5941 BD-DhAAL BD-DhAAL Claessens, Stijn. An Overview of Macroprudential Policy Tools / Stijn Claessens. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (38 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Macroprudential policies - caps on loan to value ratios, limits on credit growth and other balance sheets restrictions, (countercyclical) capital and reserve requirements and surcharges, and Pigouvian levies - have become part of the policy paradigm in emerging markets and advanced countries alike. But knowledge is still limited on these tools. Macroprudential policies ought to be motivated by market failures and externalities, but these can be hard to identify. They can also interact with various other policies, such as monetary and microprudential, raising coordination issues. Some countries, especially emerging markets, have used these tools and analyses suggest that some can reduce procyclicality and crisis risks. Yet, much remains to be studied, including tools' costs ? by adversely affecting resource allocations; how to best adapt tools to country circumstances; and preferred institutional designs, including how to address political economy risks. As such, policy makers should move carefully in adopting tools. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2014/214 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/214/001.2014.issue-214-en.xml IMF e-Library