Iñaki Aldasoro, Gerardo Ferrara, Sam Langfield, Zijun Liu, Tomohiro Ota, 04 December 2019

Macroprudential regulation is in vogue, but liquidity requirements are typically seen only as a microprudential tool. This column shows how a macroprudential approach to liquidity requirements could improve regulatory efficiency. By concentrating liquidity in systemically important banks, financial stability can be enhanced without increasing aggregate requirements.

Stephen Cecchetti, Kim Schoenholtz, 10 May 2018

CEPR Policy Research