The global financial crisis was the catalyst for regulatory change in several areas of financial system. One of the reforms was to introduce macroprudential policy as necessarily complementing the existing microprudential...
“The macro-prudential supervision tries to navigate between Scylla and Charybdis to prevent them from destroying the ship,” says Francesco Mazzaferro, Head of the European Systemic Risk Board Secretariat.
Is monetary policy, even extremely unconventional, still capable of fixing anything in the economy?
Central banks have been entrusted with the task of developing and implementing measures for limiting systemic risk. They should cope with this task but if they don’t succeed, central banks are risking their credibility.