Welfare Effects of Macroprudential Policy: Insights from a Four-Agent Model
by Dr. Kasun Darsaka Pathirage and George Bratsiotis
We’re pleased to announce the latest blog article on SUARA SEACEN by the newest member of our Macroeconomic and Monetary Policy Management faculty, Dr. Kasun Pathirage and guest author George Bratsiotis:
Macroprudential policies can strengthen financial resilience, but their effects may not necessarily be shared equally across different segments of the economy. Drawing on a recent research publication, this blog examines how capital requirements, provisioning and countercyclical tools can affect households, firms and banks differently, and highlights why financial structure and the nature of the underlying vulnerability matter for policy design.
Click here to read.
