Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/315479 
Year of Publication: 
2025
Series/Report no.: 
BOFIT Discussion Papers No. 3/2025
Publisher: 
Bank of Finland, Bank of Finland Institute for Emerging Economies (BOFIT), Helsinki
Abstract: 
Countries choose diverse policy mixes of macroprudential and capital flow management measures, yet the drivers behind these policy choices remain largely unexplored. We identify potential conditions for the adoption and determinants of the use of macroprudential and capital flow management measures from the theoretical literature and test them empirically. Rich and high-growth economies tend to rely on macroprudential policy measures, while the use of capital flow management measures decreases as the regulatory environment improves. Countries with a large foreign bank presence tend to implement fewer macroprudential and capital flow management measures.
Subjects: 
Macroprudential policy
Capital controls
Foreign banks
JEL: 
E58
F33
F38
G28
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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