European Central Bank, (2016), “ECB contribution to the European Commission’s consultation on the review of the EU macroprudential policy framework”, ECB, 12 Δεκεμβρίου
The European Central Bank (ECB) welcomes the consultation on the review of the EU macroprudential policy framework and underscores the importance of macroprudential policy as a complement to monetary policy and microprudential policy.1 One of the key lessons from the financial crisis in Europe was the inadequacy of its institutional and policy framework to prevent and address imbalances within the EU. The financial crisis also highlighted that in order to simultaneously achieve financial stability and price stability, two independent policy domains – macroprudential policy and monetary policy, endowed with separate instruments and objectives – are necessary. Monetary policy alone cannot ensure price stability and anchor inflation expectations while at the same time also guaranteeing financial stability. There are several reasons for this. One is that the financial and business cycles are often not synchronised. Moreover, variations in policy rates are too broad and blunt a tool to address sector-specific financial imbalances, which may be at the root of financial instability. This is even more the case in a monetary union where macroprudential policies in particular can address country- or sector-specific imbalances, thereby also playing a part in addressing the heterogeneity in financial and business cycles across Member States. At the same time, this heterogeneity across Member States explains why national authorities must continue to play an important role in macroprudential policy, complemented by the ECB’s role in overseeing national decisions and monitoring potential crossborder spillovers. Similarly, microprudential and macroprudential policy are complementary, ensuring individual institutions’ safety and soundness as well as the stability of the financial system as a whole.
Σχετικές Αναρτήσεις
- Merler, Silvia, (2016), “The political economy of macroprudential policy”, Bruegel, 12 Δεκεμβρίου
- Tucker, Paul, (2016), “The objectives of financial stability policy”, VoxEU, 28 Σεπτεμβρίου