G20 and macroprudential policy

  • At the upcoming G20 meetings the issue what can be done to avoid a repetition of the current deep financial crisis will again be debated. Much attention and criticism will be directed to central banks. That is unavoidable: central banks must never again permit the development of financial imbalances that are large enough to lead to the collapse of major parts of the financial system when they unwind. In the future, policy makers must “lean against the wind” and tighten financial conditions if they perceive that imbalances are forming, even if there is little hard data to rely on. And they must be mindful that the costs of acting too late can dwarf those of acting too early.

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Author:Stefan Gerlach
Parent Title (English):Policy Platform - Policy Letter
Publisher:House of Finance
Place of publication:Frankfurt am Main
Document Type:Report
Date of Publication (online):2010/04/22
Date of first Publication:2010/04/22
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2014/06/30
Page Number:3
Last Page:2
Published on 22 April 2010 at Bruegel | G20 Blog
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF)
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):License LogoDeutsches Urheberrecht