VoxEU Video
NIESR Conference: Financial Regulation: Charles Goodhart
In this video, Charles Goodhart underlines that macroprudential policies are meant to deal with systemic issues and thus need systemic indicators. Governments need to set up quantitative criteria that would trigger macroprudential policies when the thresholds were surpassed. Credit growth and housing prices should be part of the indicators. The regulation, however, need not be automatic. As with the Bank of England inflation target, passing a credit thresholds could, for example, trigger a requirement that the regulator explicit justify the use or non-use of the policies. This video was recorded at the 18th March 2016 conference on Financial Regulation organized by NIESR and held at the Bank of England.
