Macroprudential Policy in the GCC Countries

Business & Finance, Economics, Money & Monetary Policy, Macroeconomics
Cover of the book Macroprudential Policy in the GCC Countries by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama, INTERNATIONAL MONETARY FUND
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Zsofia Ms. Arvai, Ananthakrishnan Prasad, Kentaro Mr. Katayama ISBN: 9781484346525
Publisher: INTERNATIONAL MONETARY FUND Publication: March 19, 2014
Imprint: INTERNATIONAL MONETARY FUND Language: English
Author: Zsofia Ms. Arvai, Ananthakrishnan Prasad, Kentaro Mr. Katayama
ISBN: 9781484346525
Publisher: INTERNATIONAL MONETARY FUND
Publication: March 19, 2014
Imprint: INTERNATIONAL MONETARY FUND
Language: English

As undiversified commodity exporters, GCC economies are prone to pro-cyclical systemic risk in the financial system. During periods of high hydrocarbon prices, favorable economic prospects make the financial sector keen to lend, leading to higher domestic credit growth and easier access to external financing. Fiscal policy is a very important tool for macroeconomic management, but due to the significant time lags and expenditure rigidities, it has not been a flexible enough tool to prevent credit booms and the build-up of systemic risk in the GCC. This, together with limited monetary policy independence because of the pegged exchange rate, means that macro-prudential policy has a particularly important role in limiting systemic risk in the financial system. This importance is reinforced by the underdeveloped financial markets in the region that provide limited risk management tools and shortcomings in crisis resolution frameworks. This paper will discuss the importance of macro-prudential policy in the GCC countries, look at the experience with macro-prudential policies in the boom/bust cycle in the second half of the 2000s, and use the broad frameworks being developed in the Fund and elsewhere to discuss ways existing frameworks and policy toolkits in the region can be strengthened given the characteristics of the GCC economies.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

As undiversified commodity exporters, GCC economies are prone to pro-cyclical systemic risk in the financial system. During periods of high hydrocarbon prices, favorable economic prospects make the financial sector keen to lend, leading to higher domestic credit growth and easier access to external financing. Fiscal policy is a very important tool for macroeconomic management, but due to the significant time lags and expenditure rigidities, it has not been a flexible enough tool to prevent credit booms and the build-up of systemic risk in the GCC. This, together with limited monetary policy independence because of the pegged exchange rate, means that macro-prudential policy has a particularly important role in limiting systemic risk in the financial system. This importance is reinforced by the underdeveloped financial markets in the region that provide limited risk management tools and shortcomings in crisis resolution frameworks. This paper will discuss the importance of macro-prudential policy in the GCC countries, look at the experience with macro-prudential policies in the boom/bust cycle in the second half of the 2000s, and use the broad frameworks being developed in the Fund and elsewhere to discuss ways existing frameworks and policy toolkits in the region can be strengthened given the characteristics of the GCC economies.

More books from INTERNATIONAL MONETARY FUND

Cover of the book FDI and the Investment Climate in the CIS Countries by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama
Cover of the book Fiscal Policy for the Crisis by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama
Cover of the book Policy Experiences and Issues in the Baltics, Russia, and Other Countries of the Former Soviet Union by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama
Cover of the book IMF Performance in the Run-Up to the Financial and Economic Crisis: IMF Surveillance in 2004-07 by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama
Cover of the book Collecting Taxes During an Economic Crisis: Challenges and Policy Options by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama
Cover of the book The Caribbean: From Vulnerability to Sustained Growth by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama
Cover of the book Regional Economic Outlook: Western Hemisphere (November 2007) by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama
Cover of the book Regional Economic Outlook: Sub-Saharan African (October 2007) by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama
Cover of the book Finance & Development, March 2003 by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama
Cover of the book Fiscal Policy to Mitigate Climate Change: A Guide for Policymakers by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama
Cover of the book Finance & Development, September 1999 by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama
Cover of the book Economic Adjustment: Policies and Problems: Papers Presented at a Seminar held in Wellington, New Zealand, February 17-19, 1986 by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama
Cover of the book Fiscal Monitor, October 2012 by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama
Cover of the book Shifting Commodity Markets in a Globalized World by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama
Cover of the book Current Legal Issues Affecting Central Banks, Volume V by Zsofia  Ms. Arvai, Ananthakrishnan  Prasad, Kentaro  Mr. Katayama
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy