A novel risk-management perspective for macroprudential policy
When managing financial imbalances, macroprudential policymakers face an intertemporal trade-off between facilitating short-term expected growth and containing medium-term downside risks to the economy. To help assess this trade-off, this column proposes a risk management framework which extends the well-known notion of growth-at-risk to consider the entire predictive real GDP
United States Zoe Sprokel Alexander Popov University College London European Central Bank Research Bulletin Of The European Central Bank
Source: voxeu.org