主讲人：Jin Hao (WISE and School of Economics, Xiamen University)
We study the effectiveness of macroprudential policies on mitigating credit growth. Empirically we find that macroprudential policies contain domestic credit growth, but are less effective in financially more integrated economies due to greater cross-border bank borrowing. We develop a small open economy DSGE model with cross-border bank financing to interpret the empirical findings and quantitatively evaluate the macroeconomic and welfare implications of macroprudential policies. Consistent with the empirical evidence, our model shows that banks contract credits and increase the fraction of foreign financing in response to a tightening of macroprudential policies. Banks become more vulnerable because of the composition shift, which partially offsets the welfare gains from stabilizing credit growth. Our results suggest it is desirable to complement macroprudential regulations with capital account management.
Hao Jin is an assistant professor in economics at WISE and School of Economics, Xiamen University. He obtained his Ph.D. in economics from Indiana University, Bloomington. His research areas include macroeconomics, international finance, and monetary economics. His work has been presented in academic conference including the Asian Meeting of the Econometric Society, China Meeting of the Econometric Society, Midwest Macroeconomic Meeting, and Columbia-Tsinghua Conference in International Economics.