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The impact of macroprudential policies on industrial growth

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  • Madeira, Carlos

    (Bank for International Settlements
    Central Bank of Chile)

Abstract

This paper analyzes the causal impact of macroprudential policies on growth, using industry-level data for 93 countries to overcome reverse-causality issues. Data on individual industries is required for identification, because national regulators care about the total GDP but not about the product of small economic sectors. I find that macroprudential tightening have a negative impact on manufacturing growth, especially in the long-term and for industries with high external finance dependence. This impact is stronger in periods of higher growth and for advanced economies. Supply of capital prudential policies have a larger impact on manufacturing growth.

Suggested Citation

  • Madeira, Carlos, 2023. "The impact of macroprudential policies on industrial growth," Working Papers 2023-012, Banco Central de Reserva del Perú.
    • Handle: RePEc:rbp:wpaper:2023-012
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    Cited by:

    1. Madeira, Carlos, 2024. "The impact of macroprudential policies on industrial growth," Journal of International Money and Finance, Elsevier, vol. 145(C).
    2. Henry Penikas, 2021. "Review of Bank of Russia – NES Workshop 'Identification and Measurement of Macroprudential Policies Effects'," Russian Journal of Money and Finance, Bank of Russia, vol. 80(3), pages 94-104, September.
    3. Carlos Madeira, 2023. "The evolution of macroprudential policy use in Chile, Latin America and the OECD," Journal of Banking Regulation, Palgrave Macmillan, vol. 24(3), pages 357-380, September.
    4. Mikhail I. Stolbov & Maria A. Shchepeleva & Alexander M. Karminsky, 2021. "A global perspective on macroprudential policy interaction with systemic risk, real economic activity, and monetary intervention," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-25, December.

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    More about this item

    Keywords

    Macroprudential policy; Financial development; Growth;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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