Speaker：Dr Hao JIN

Site:B226

Time：14：00-15：30 Friday Nov.24 2017

We study the macroeconomic and welfare implications of macroprudential policies in a small open economy DSGE model with cross-border bank financing. Consistent with the empirical evidence, our model shows macroprudential policies that regulate the overall financing of banks lower the growth in credit, but result in more cross-border bank borrowing and are thus less effective in financially more integrated economies. On the other hand, in financially more developed economies, financial openness does not affect the effectiveness of macroprudential policies.