<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>One of the focuses of recent literature has been the macroeconomic effects of macroprudential policy instruments. The innovation of this paper is that it studies the effects of transparent macro-prudential policies on price stability. The results presented herein provide the first empirical evidence that macroprudential transparency can aid to achieve stable inflation in emerging and developing countries. The effect is necessarily transmitted through reduced occurrence of banking crises. We also record a particular advantage of macroprudential transparency for non-inflation targeting countries. Overall, the results are robust to the use of two proxies of price stability.</p>
</abstract>

One of the focuses of recent literature has been the macroeconomic effects of macroprudential policy instruments. The innovation of this paper is that it studies the effects of transparent macro-prudential policies on price stability. The results presented herein provide the first empirical evidence that macroprudential transparency can aid to achieve stable inflation in emerging and developing countries. The effect is necessarily transmitted through reduced occurrence of banking crises. We also record a particular advantage of macroprudential transparency for non-inflation targeting countries. Overall, the results are robust to the use of two proxies of price stability.

Macroprudential Transparency and Price Stability in Emerging and Developing Countries

Social and Economic Policy Analysis Laboratory

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution 4.0 International License.

One of the focuses of recent literature has been the macroeconomic effects of macroprudential policy instruments. The innovation of this paper is that it...

Macroprudential Transparency and Price Stability in Emerging and Developing Countries

Published Online: Jan 18, 2022

Page range: 105 - 129

Received: Aug 20, 2020

Accepted: Mar 09, 2021

DOI: https://doi.org/10.2478/jcbtp-2022-0005

Keywords
macroprudential transparency, price stability, banking crisis, dynamic panel, mediation, bootstrapping

© 2022 Emna Trabelsi, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Macroprudential Transparency and Price Stability in Emerging and Developing Countries

Published Online: Jan 18, 2022

Page range: 105 - 129

Received: Aug 20, 2020

Accepted: Mar 09, 2021

DOI: https://doi.org/10.2478/jcbtp-2022-0005

Keywordsmacroprudential transparency, price stability, banking crisis, dynamic panel, mediation, bootstrapping

© 2022 Emna Trabelsi, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
macroprudential transparency, price stability, banking crisis, dynamic panel, mediation, bootstrapping