Early COVID-19 lessons for macroprudential policy

In the aftermath of the financial crisis of 2007–10, an array of policy initiatives have aimed at protecting financial stability under the umbrella concept of “macroprudential” policy—prudential measures that apply to the financial system as a whole in complement to “microprudential” regulation of individual financial firms. This episode will be an opportunity to take stock of the lessons on macroprudential policy that can be learned from the experience in the COVID-19 crisis so far.

Joining this episode of Financial Statements were:

Host:

Nicolas Véron, Senior Fellow, Peterson Institute for International Economics (PIIE)

Guests:

• Jon Cunliffe, Deputy Governor for Financial Stability, Bank of England

• Daniel Tarullo, Nomura Professor of International Financial Regulatory Practice, Harvard Law School

As relevant background material, see speech by Jon Cunliffe in June.