The role of macro-prudential policy in the prevention and correction of imbalances in the euro area
The euro area suffers from economic and financial imbalances between its members. Macro-prudential policy can help remedy this in as much as it can be deployed both at euro area level and Member State level. A macro-prudential policy framework to regulate financial cycles at Member State level and improve the resilience of systemic groups at euro area level would improve the economic and financial stability of the euro area and each of its members. Drawing on an inventory of the current practices and the teachings of recent academic work, we have formulated 15 proposals which aim to identify effective macro-prudential instruments to achieve this stability and, in a context of institutional transformation (Banking Union, Brexit, etc.) likely to facilitate changes, to streamline the institutional framework.
Study
External author
Jézabel Couppey-Soubeyran, Salim Dehmej
About this document
Publication type
Keyword
- budget
- central bank
- cooperation policy
- credit institution
- economic analysis
- economic conditions
- economic cooperation
- economic stabilisation
- ECONOMICS
- EU banking union
- EU finance
- EU financial instrument
- euro area
- EUROPEAN UNION
- FINANCE
- financial control
- financial institutions and credit
- financial market
- financial stability
- free movement of capital
- INTERNATIONAL RELATIONS
- macroeconomics
- market supervision
- monetary economics
- monetary relations
- TRADE
- trade policy