{"title":"Balancing financial stability and economic growth: a comprehensive analysis of macroprudential regulation","authors":"Salma Gallas, Houssam Bouzgarrou, Montassar Zayati","doi":"10.1007/s40822-024-00283-x","DOIUrl":null,"url":null,"abstract":"<p>The purpose of this study is to explore the influence of macroprudential measures on financial stability in both advanced and emerging economies, considering key endogenous variables such as banking crises and economic growth. Our analysis covers 66 countries over the period 2000–2017 and focuses on two effects: the direct stabilizing effect, which reduces the likelihood of banking crises, and the indirect destabilizing effect, which may slow down the GDP growth. Employing Generalized Impulse Response Function modeling, we assess the efficacy of macroprudential policy tools. Our findings suggest that macroprudential tightening is more effective in reducing the likelihood of banking crises than in stimulating economic growth, particularly when the impact of macroprudential tools is positive. Ultimately, our study highlights the interplay between the probability of banking crises and financial stability, demonstrating the importance of macroprudential regulation in promoting a stable and resilient financial system.</p>","PeriodicalId":45064,"journal":{"name":"Eurasian Economic Review","volume":"25 1","pages":""},"PeriodicalIF":2.5000,"publicationDate":"2024-07-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Eurasian Economic Review","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1007/s40822-024-00283-x","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
The purpose of this study is to explore the influence of macroprudential measures on financial stability in both advanced and emerging economies, considering key endogenous variables such as banking crises and economic growth. Our analysis covers 66 countries over the period 2000–2017 and focuses on two effects: the direct stabilizing effect, which reduces the likelihood of banking crises, and the indirect destabilizing effect, which may slow down the GDP growth. Employing Generalized Impulse Response Function modeling, we assess the efficacy of macroprudential policy tools. Our findings suggest that macroprudential tightening is more effective in reducing the likelihood of banking crises than in stimulating economic growth, particularly when the impact of macroprudential tools is positive. Ultimately, our study highlights the interplay between the probability of banking crises and financial stability, demonstrating the importance of macroprudential regulation in promoting a stable and resilient financial system.
期刊介绍：
The mission of Eurasian Economic Review is to publish peer-reviewed empirical research papers that test, extend, or build theory and contribute to practice. All empirical methods - including, but not limited to, qualitative, quantitative, field, laboratory, and any combination of methods - are welcome. Empirical, theoretical and methodological articles from all fields of finance and applied macroeconomics are featured in the journal. Theoretical and/or review articles that integrate existing bodies of research and that provide new insights into the field are highly encouraged. The journal has a broad scope, addressing such issues as: financial systems and regulation, corporate and start-up finance, macro and sustainable finance, finance and innovation, consumer finance, public policies on financial markets within local, regional, national and international contexts, money and banking, and the interface of labor and financial economics. The macroeconomics coverage includes topics from monetary economics, labor economics, international economics and development economics.
Eurasian Economic Review is published quarterly. To be published in Eurasian Economic Review, a manuscript must make strong empirical and/or theoretical contributions and highlight the significance of those contributions to our field. Consequently, preference is given to submissions that test, extend, or build strong theoretical frameworks while empirically examining issues with high importance for theory and practice. Eurasian Economic Review is not tied to any national context. Although it focuses on Europe and Asia, all papers from related fields on any region or country are highly encouraged. Single country studies, cross-country or regional studies can be submitted.
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