02226cas a2200337 a 4500 AALejournalIMF022379 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513591483 1018-5941 BD-DhAAL BD-DhAAL Barajas, Adolfo. Loose Financial Conditions, Rising Leverage, and Risks to Macro-Financial Stability / Adolfo Barajas, Woon Choi, Ken Gan, Pierre Guerin. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (43 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 After a steady increase following the global financial crisis, private nonfinancial sector leverage rose further during the COVID-19 on the back of easy financial conditions induced by unprecedented policy support. We investigate the empirical relationships between increased leverage, financial conditions, and macro-financial stability in a sample of major advanced and emerging market economies. We find that loose financial conditions contribute to leverage buildups and generate an intertemporal tradeoff: financial stability risk is lessened in the near term but exacerbated in the medium term. The tradeoff is amplified during credit booms, when debt service burdens are particularly high, or when the share of foreign currency debt is high in emerging markets. Selected macroprudential tools can arrest leverage buildups and mitigate the tradeoff. Mode of access: Internet Banks imf Depository Institutions imf Micro Finance Institutions imf Monetary Policy imf Mortgages imf Choi, Woon. Gan, Ken. Guerin, Pierre. IMF Working Papers; Working Paper ; No. 2021/222 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/222/001.2021.issue-222-en.xml IMF e-Library