02095cas a2200277 a 4500 AALejournalIMF021046 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513547763 1018-5941 BD-DhAAL BD-DhAAL Bergant, Katharina. Dampening Global Financial Shocks : Can Macroprudential Regulation Help (More than Capital Controls)? / Katharina Bergant, Francesco Grigoli, Niels-Jakob Hansen, Damiano Sandri. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (41 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 We show that macroprudential regulation can considerably dampen the impact of global financial shocks on emerging markets. More specifically, a tighter level of regulation reduces the sensitivity of GDP growth to VIX movements and capital flow shocks. A broad set of macroprudential tools contribute to this result, including measures targeting bank capital and liquidity, foreign currency mismatches, and risky forms of credit. We also find that tighter macroprudential regulation allows monetary policy to respond more countercyclically to global financial shocks. This could be an important channel through which macroprudential regulation enhances macroeconomic stability. These findings on the benefits of macroprudential regulation are particularly notable since we do not find evidence that stricter capital controls provide similar gains. Mode of access: Internet Grigoli, Francesco. Hansen, Niels-Jakob. Sandri, Damiano. IMF Working Papers; Working Paper ; No. 2020/106 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/106/001.2020.issue-106-en.xml IMF e-Library