Digging Deeper - Evidence on the Effects of Macroprudential Policies from a New Database

Monday, May 20, 2.00 pm to 3.30 pm

Presenter
Ms. Gaston Gelos, Assistant Director, Monetary and Capital Markets, International Monetary Fund


The presentation will introduce a new comprehensive database of macroprudential policies, which combines information from various sources and covers 134 countries from 1990 to 2016. Analyses based on these data confirm that loan-targeted instruments have a significant impact on household credit, and a milder, dampening effect on consumption. The next step of the analysis uses novel numerical information on loan-to-value (LTV) limits from the database and an econometric method that addresses endogeneity concerns. The results point to economically significant and nonlinear effects, with a declining impact for larger tightening measures. Moreover, the initial LTV level appears to matter; when LTV limits are already tight, the effects of additional tightening on credit is dampened while those on consumption are strengthened.

Mr. Gaston Gelos is Assistant Director at the Monetary and Capital Markets Department of the International Monetary Fund, where he heads the Monetary and Macroprudential Policies Division. In that capacity, he leads research and policy work in the areas of monetary-, capital-flow-, exchange-rate-, and macroprudential policies, and oversees global technical assistance efforts in these areas. His research covers a range of topics including banking, financial stability, and monetary policy. He has published widely in leading academic journals. Mr. Gelos holds a Ph.D. from Yale University and a Diploma from Bonn University.

The event will take place at the Joint Vienna Institute, room 700A, 7th floor, Mariahilfer Straße 97, 1060 Vienna.
We hope that you will be able to join us, and look forward to your participation.
To participate, please register by May 16, 2019 to events@remove-this.jvi.org .

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