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Alexandre Lamfalussy and the origins of the BIS macro-prudential approach to financial stability

Author

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  • Ivo Maes

    (National Bank of Belgium, Robert Triffin Chair, Universite catholique de Louvain, HUBrussel and ICHEC Brussels Management School)

Abstract

Among the international policy institutions, the Bank for International Settlements (BIS) is known for its sensitivity to financial stability issues. Typical for the BIS is a �macro-prudential� approach. In this paper, it is argued that Alexandre Lamfalussy, who was at the BIS from 1976 to 1993, played a crucial role in shaping the BIS approach. Typical for Lamfalussy are a broad macroeconomic view and a focus on the systemically important institutions. In Lamfalussy�s view, there is thus very much an overlap between the micro- and macro-prudential dimensions of financial stability. The main reasons for his sensitivity to financial fragility were: a �Keynesian� Weltanschauung (that a market economy is not sufficiently self-correcting), the emphasis of Dupriez (his teacher) on cycles, Lamfalussy�s experience as a commercial banker, BIS involvement in financial stability issues, especially the Latin American debt crisis of 1982-83 and research on financial innovations.

Suggested Citation

  • Ivo Maes, 2010. "Alexandre Lamfalussy and the origins of the BIS macro-prudential approach to financial stability," PSL Quarterly Review, Economia civile, vol. 63(254), pages 265-292.
    • Handle: RePEc:psl:pslqrr:2010:34
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    File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/9429/9324
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    References listed on IDEAS

    as
    1. Stephen M. Goldfeld, 1976. "The Case of the Missing Money," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 7(3), pages 683-740.
    2. Bank for International Settlements, 1986. "Recent innovations in international banking (Cross Report)," CGFS Papers, Bank for International Settlements, number 01, december.
    3. Lamfalussy, Alexandre, 1985. "The Changing Environment of Central Bank Policy," American Economic Review, American Economic Association, vol. 75(2), pages 409-413, May.
    4. Borio,Claudio & Toniolo,Gianni & Clement,Piet (ed.), 2008. "The Past and Future of Central Bank Cooperation," Cambridge Books, Cambridge University Press, number 9780521877794, October.
    5. William R. White, 2006. "Procyclicality in the financial system: do we need a new macrofinancial stabilisation framework?," BIS Working Papers 193, Bank for International Settlements.
    6. Ivo Maes, 2009. "The young Lamfalussy : an empirical and policy-oriented growth theorist," Working Paper Research 163, National Bank of Belgium.
    7. Claudio E. V. Borio & Gianni Toniolo, 2006. "One hundred and thirty years of central bank cooperation: a BIS perspective," BIS Working Papers 197, Bank for International Settlements.
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    Citations

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    Cited by:

    1. Ivo Maes & Piet Clement, 2018. "Alexandre Lamfalussy and the monetary policy debates among central bankers during the Great Inflation," Working Paper Research 341, National Bank of Belgium.
    2. Ivo Maes, 2015. "Alexandre Lamfalussy (1929 - 2015)," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 2015(2), pages 153-158.
    3. Katalin Mérő, 2017. "The Emergence of Macroprudential Bank Regulation: A Review," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 67(3), pages 289-309, September.
    4. Casselmann, Farina, 2013. "Financial services regulation in the wake of the crisis: The Capital Requirements Directive IV and the Capital Requirements Regulation," IPE Working Papers 18/2013, Berlin School of Economics and Law, Institute for International Political Economy (IPE).

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    More about this item

    Keywords

    supervision; banking sector; Bank for International Settlements; Lamfalussy;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • B32 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Obituaries
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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