Evaluating the macroprudential stance in a growth-at-risk framework

Economic Memo - November 2022 - No. 14

Authors Cucic, Dominic; Yordanova, Ianna Georgieva; Møller, Niels Framroze; Søndergaard, Simon Gade
Subject Financial stability; Macroprudential policy
Type Economic Memo
Year 2022
Published 16 November 2022
Abstract icon The ultimate objective of macroprudential policy is to contribute to financial stability by curbing the build-up of systemic risks and alleviating negative outcomes for the economy should risks materialize . Measuring and communicating whether policy goals are achieved is challenging, as financial crises are rare and risks are often only measurable in case they materialize. The memo outlines how growth-at-risk can be used to illustrate the objectives of macroprudential policy.