Modelling approaches to assess the effectiveness of macro-prudential policy

Abstract

In this paper was approached the problem of the effectiveness of the macro-prudential policy, which became an actual subject in scientific literature. We made a literature review of the appliedmethods to diagnose the effectiveness of the macro-prudential policy toolkit; explored the possiblemethodologies and frameworks which can be used to investigate the effectiveness of theimplemented macro-prudential policies (Alpanda et al. (2014), CGFS (2012)); showed theiradvantages and drawbacks and proposed an empirical method. By this paper we aimed to developa proper framework for policy-makers to follow for sustainable implementation of the macroprudential policy and assessment of its effectiveness.