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Implementing a Macroprudential Framework: Blending Boldness and Realism

Claudio Borio

Capitalism and Society2011https://doi.org/10.2202/1932-0213.1083article
ABDC C
Weight
0.67

What the paper says

There is now a broad consensus in the policy community that strengthening the macroprudential orientation of regulatory and supervisory frameworks is essential for the promotion of financial stability. The window of opportunity to put in place fully fledged macroprudential frameworks should not be missed. Meeting this challenge calls for a finely balanced blend of boldness and realism. Boldness is required to face the hard design questions head-on; realism to avoid overreach and to manage expectations. Policymakers should be as ambitious as possible, but no more. In all this, research has an important role to play in allowing the framework to grow at a pace commensurate with our knowledge. This speech considers how to strike the balance between boldness and realism in several aspects of the framework: in the criterion for judging its success; in how closely systemic risk should be tracked; in the mix between an aggregate and a sectoral approach; in that between rules and discretion; and in governance arrangements. It also highlights some key questions for research.Comments on this paper can be found at: http://ssrn.com/abstract=2208661

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https://doi.org/https://doi.org/10.2202/1932-0213.1083

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@article{claudio2011,
  title        = {{Implementing a Macroprudential Framework: Blending Boldness and Realism}},
  author       = {Claudio Borio},
  journal      = {Capitalism and Society},
  year         = {2011},
  doi          = {https://doi.org/https://doi.org/10.2202/1932-0213.1083},
}

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Implementing a Macroprudential Framework: Blending Boldness and Realism

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Evidence weight

0.67

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.89 × 0.4 = 0.36
M · momentum0.60 × 0.15 = 0.09
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.