BoE’s Haldane offers a case for macroprudential policy

andrew-haldane-bankofengland

Andrew Haldane, the executive director for financial stability at the Bank of England, on Saturday said the nature of credit crises warranted macroprudential policy.

Addressing an audience at Columbia University, New York, Haldane presented a model that showed how credit cycles arise from a collective action failure among banks. "The lending decisions banks take, while individually rational, are collectively suboptimal," Haldane said. "Individual banks may fail to internalise the reputational ex

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: