Raising CCyBs could have ‘greatly mitigated’ 2008 crisis – St Louis Fed paper

The St Louis Fed
Matthew Black/Flickr

Raising countercyclical capital buffers (CCyB) could have largely prevented the 2008 financial crisis, but not the subsequent recession, a paper published by the Federal Reserve Bank of St Louis finds.

In the paper, Miguel Faria e Castro models the behaviour of the US economy before, during and after the 2008 financial crisis. He then examines whether raising a CCyB would have mitigated some effects of the crisis.

A CCyB is an additional capital buffer that central banks can add to the

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 individual account here: