An Overview of Macroprudential Policy in the European Union Countries in the Last Decade

Abstract

Macroprudential policy is a research topic that has been intensely approached in recent years. The analyses present in the economic literature covers several aspects and aims to clarify the management and functioning of the macroprudential policy, to identify the effects and effectiveness regarding the implementation of macroprudential measures, and to determine the relationship with other macroeconomic policies, i.e., the influence exerted on them. A key element for macroprudential policy to play its role in reducing systemic risk is the political and institutional environment in which it is implemented and that should support this goal. The article aims at identifying a possible dominant profile for macroprudential policy in the European Union, based on the analysis of specific elements related to the type of the governance of national macroprudential authority, the instruments applied and the degree of compliance with the European Systemic Risk Board recommendation on the macroprudential mandate of national authorities.

Keywords

• macroprudential mandate
• central bank
• decision power
• european systemic risk board recommendations