Provides an analysis of the links between macroprudential regulation, in the form of capital requirements, and economic growth from a longer-run perspective. The analysis is based on a two-period overlapping generations model with banking. The analysis highlights the fact that there are several channels, in addition to mitigating effects on risk-taking, through which capital requirements can affect long-run growth. These channels may operate in opposite directions, making their net impact ambiguous.

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Macroprudential Regulation and Economic Growth

  • Pierre-Richard Agénor

摘要

Provides an analysis of the links between macroprudential regulation, in the form of capital requirements, and economic growth from a longer-run perspective. The analysis is based on a two-period overlapping generations model with banking. The analysis highlights the fact that there are several channels, in addition to mitigating effects on risk-taking, through which capital requirements can affect long-run growth. These channels may operate in opposite directions, making their net impact ambiguous.