Over the last few years, macroprudential policy has become the big buzzword among academics and policymakers. However, little is known about the nature and use of macroprudential tools (such as reserve requirements) as a new policy instrument in emerging markets. In a new report from ESPLA and the World Bank, “Reserve Requirements in the Brave New Macroprudential World,” Tito Cordella, Pablo Federico, Carlos Vegh, and Guillermo Vuletin shed light on the use of macroprudential policy and its interaction with monetary policy.
On April 1, the World Bank and the Brookings Global-CERES Economic and Social Policy in Latin America Initiative (ESPLA) launched the report and held a discussion on its findings. Brookings Fellow Guillermo Vuletin and Carlos A. Vegh, the Fred H. Sanderson Professor of International Economics at Johns Hopkins University, provided a short presentation on the report’s findings. Their presentation was followed by a panel discussion with leading experts in the field.