G30 Publishes Macroprudential Policy: Addressing the Things We Don’t Know, by Alastair Clark and Andrew Large

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The G30 publishes a new Occasional Paper discussing macroprudential policy.

Dr. Jacob Frenkel, Chairman of the Group of Thirty stated: "The central banking and financial communities should welcome this paper as an important macroprudential policy resource."

The Group of Thirty today released Macroprudential Policy: Addressing the Things We Don’t Know, by Alastair Clark and Sir Andrew Large, an Occasional Paper that outlines ten key considerations as national authorities address macroprudential policy. The authors speak to the need for a clear institutional focus of authority, address the tensions between macroprudential policy and other economic and financial policies, and discuss the development of effective policy tools, as well as appropriate transparency and accountability arrangements.

Dr. Jacob Frenkel, Chairman of the Group of Thirty stated: "The central banking and financial communities should welcome this paper as an important macroprudential policy resource. This paper sheds light on the contentious issues and builds upon the Group’s previous work in this space. "

"We look at the ongoing debate surrounding macroprudential policy and identify some key and often difficult questions that need to be addressed in order to create a strong, effective policy framework which will not only reduce the likelihood of systemic crises but also be helpful during a crisis," said Mr. Clark.

Sir Andrew Large added, “The financial system is highly interconnected. Yet frameworks need to be constructed on a national basis. So it is important for each country to find solutions to these difficult issues. The strong frameworks which will emerge can then act as a basis for necessary coordination.”

PDFs of this paper are online at http://www.group30.org/publications.shtml, or via email at info(at)group30(dot)org. Hard copies will be available on September 26.

The Group of Thirty, formally known as “The Consultative Group on International Economic and Monetary Affairs, Inc.” was founded in 1978. The Group of Thirty is a private, nonprofit, international body composed of senior representatives of the private and public sectors and academia. The Group aims to deepen understanding of international economic and financial issues, to explore the international repercussions of decisions taken in the public and private sectors and to examine the choices available to market practitioners and to policymakers. The Group is led by Paul A. Volcker, Chairman of Trustees, and Jacob A. Frenkel, Chairman of the Group.

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Stuart Mackintosh
The Group of Thirty
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