Terhi Jokipii, Reto Nyffeler, Stéphane Riederer, 08 December 2020

 A growing body of literature has highlighted important flaws in the credit-to-GDP gap computed according to the BIS guidelines as a measure of excess credit for policy purposes. This column assesses the relevance of these critiques from the Swiss perspective. It finds no compelling evidence to suggest the need to deviate from using the BIS gap. However, authorities should be cautious in interpreting the gap’s signal, particularly during periods of large and strong GDP movements and during long-lasting boom phases and subsequent busts. Authorities should also consider strengthening their decision-making frameworks with additional credit relevant indicators.

David Greenaway, 14 June 2012

This joint BIS-CEPR-ESRC eBook looks at the UK’s medium-term growth prospects and the role that policy might have in shaping the economy’s growth trajectory once it emerges from recession.

Claudio Borio, 14 April 2009

There is now a growing consensus among policymakers and academics that a key element to improve safeguards against financial instability is to strengthen the “macroprudential” orientation of regulatory and supervisory frameworks. This column explains the approach and various issues that regulators must address to implement it.

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