My paper, "Objectives and Challenges of Macroprudential Policy", co-authored with Prof. Charles Nolan was prepared for the 2015 Money Macro and Finance Group UK Monetary and Financial Conference. This conference was hosted by Bloomberg in their London offices on 25 September 2015. Following the conference, our paper was featured on centralbanking.com (paywalled), an excellent source of monetary policy news and analysis. I have also blogged about the paper at cambridge.tax. Many thanks to our discussants on the day, Sir Paul Tucker and Prof. Douglas Gale, for their excellent suggestions and comments.
"Objectives and Challenges of Macroprudential Policy", co-authored with Prof. Charles Nolan. University of Glasgow Economics Discussion Paper 2015-22 (available here).
The establishment of the UK Financial Policy Committee is a landmark development in macroprudential oversight. However, its purview may be overly narrow. Macroprudential policy ought to be concerned with the overall efficiency of the financial system. Macroprudential policymakers should have a role as much concerned with providing authoritative, public advice on areas of policy relevant to aggregate financial efficiency as with imposing additional restrictions on bank lending. Issues of independence and transparency loom large under the current regime as well as with some suggestions we make.