Macroprudential transparency and price stability in emerging and developing countries

Emna Trabelsi

One of the focuses of recent literature has been the macroeconomic effects of macroprudential policy instruments. The innovation of this paper is that it studies the effects of transparent macro-prudential policies on price stability. The results presented herein provide the first empirical evidence that macroprudential transparency can aid to achieve stable inflation in emerging and developing countries. The effect is necessarily transmitted through reduced occurrence of banking crises. We also record a particular advantage of macroprudential transparency for non-inflation targeting countries. Overall, the results are robust to the use of two proxies of price stability.

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Year of publication:	2022
Authors:	Trabelsi, Emna
Published in:	Journal of central banking theory and practice. - Warsaw : De Gruyter Open, ISSN 2336-9205, ZDB-ID 2675850-7. - Vol. 11.2022, 1, p. 105-129
Subject:	macroprudential transparency \| price stability \| banking crisis \| dynamic panel \| mediation \| bootstrapping \| Bankenkrise \| Banking crisis \| Finanzkrise \| Financial crisis \| Entwicklungsländer \| Developing countries \| Preisstabilität \| Price stability \| Schwellenländer \| Emerging economies \| Finanzmarktaufsicht \| Financial supervision \| Geldpolitik \| Monetary policy \| Bankenaufsicht \| Banking supervision \| Bootstrap-Verfahren \| Bootstrap approach