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Papers by Jose David GARCIA REVELO

RePEc: Research Papers in Economics, 2019

Considering a sample of 37 emerging and industrialised economies from 2000Q1 to 2014Q4, we empiri... more Considering a sample of 37 emerging and industrialised economies from 2000Q1 to 2014Q4, we empirically assess the effectiveness of macroprudential policies in curbing domestic credit growth, and whether this effectiveness is affected by monetary policy conditions. We obtain three important results. First, in line with previous research, our findings suggest that an overall tightening in macroprudential policies is associated with a reduction in credit growth. Second, we show that a restrictive monetary policy enhances the impact of macroprudential tightening actions on credit growth. Third, we find evidence that monetary policy helps to reduce the transmission delay of macroprudential policy actions. Consequently, results that we obtain confirm the need for coordination between both policies.

Social Science Research Network, 2024

Revue française d'économie, 2018

Depuis la crise financiere mondiale, les economies avancees comme les economies emergentes ont pr... more Depuis la crise financiere mondiale, les economies avancees comme les economies emergentes ont progresse dans la mise en place d’un nouveau cadre de politique macroprudentielle et la mise en œuvre de mesures macroprudentielles. Cet article presente un apercu de ces mesures et de leur efficacite, et s’attache a fournir un eclaircissement aux debats recents entourant la politique macroprudentielle. En particulier, il se focalise sur deux defis majeurs qui restent a relever dans la mise en œuvre de la politique macroprudentielle, a savoir la coordination avec la politique monetaire et l’architecture institutionnelle qui en decoule, et la coordination internationale des politiques macroprudentielles. Ces deux questions font aujourd’hui l’objet des plus vifs debats et des plus nombreuses contributions academiques, et le but de cet article est alors de realiser un point d’etape sur l’avancee des connaissances et ce qui reste d’ignorance a leur sujet, une decennie apres le declenchement de la crise.

Journal of Banking and Finance, Jun 1, 2022

This paper aims to provide a comprehensive analysis of the potential conflicts between macroprude... more This paper aims to provide a comprehensive analysis of the potential conflicts between macroprudential and monetary policies within a DGSE model with financial frictions. The identification of conflicts is conditional on different types of shocks, different policy instruments, and different policy objectives (variance of key variables, probability of a crisis, growth-at-risk). We first find that conflicts are not systematic but are fairly frequent, especially in the case of supply-side and widespread shocks such as technology and bank capital shocks. Second, monetary policy and countercyclical capital requirements generate conflicts in many circumstances. By affecting interest rates, they both "get in all the cracks", albeit with their respective targets generally moving in opposite directions. Nonetheless, monetary policy could reduce its adverse financial side effects by responding strongly to the output gap. Third, loan-to-value caps, as sector-specific instruments, cause few conflicts. Thus, they can be easily implemented without concerns about generating potential spillovers, whereas smooth coordination is required between the implementation of capital requirements and of monetary policy.

Revue française d'économie, 2018

Depuis la crise financiere mondiale, les economies avancees comme les economies emergentes ont pr... more Depuis la crise financiere mondiale, les economies avancees comme les economies emergentes ont progresse dans la mise en place d’un nouveau cadre de politique macroprudentielle et la mise en œuvre de mesures macroprudentielles. Cet article presente un apercu de ces mesures et de leur efficacite, et s’attache a fournir un eclaircissement aux debats recents entourant la politique macroprudentielle. En particulier, il se focalise sur deux defis majeurs qui restent a relever dans la mise en œuvre de la politique macroprudentielle, a savoir la coordination avec la politique monetaire et l’architecture institutionnelle qui en decoule, et la coordination internationale des politiques macroprudentielles. Ces deux questions font aujourd’hui l’objet des plus vifs debats et des plus nombreuses contributions academiques, et le but de cet article est alors de realiser un point d’etape sur l’avancee des connaissances et ce qui reste d’ignorance a leur sujet, une decennie apres le declenchement de la crise.

Journal of International Money and Finance, Nov 1, 2020

Considering a sample of 37 emerging and advanced economies from 2000Q1 to 2014Q4, we empirically ... more Considering a sample of 37 emerging and advanced economies from 2000Q1 to 2014Q4, we empirically assess how effective macroprudential policies are in curbing domestic credit growth, and whether their effectiveness is affected by monetary policy conditions. We obtain three important results. First our findings suggest in line with previous research that an overall tightening in macroprudential policies is associated with a reduction in credit growth. Second, we show that a restrictive monetary policy enhances the impact of macroprudential tightening on credit growth. Third, we find evidence that monetary policy helps to reduce the transmission delay of macroprudential policy actions. Consequently our results confirm the need for coordination between the two policies.

Journal of International Money and Finance, 2020

Considering a sample of 37 emerging and advanced economies from 2000Q1 to 2014Q4, we empirically ... more Considering a sample of 37 emerging and advanced economies from 2000Q1 to 2014Q4, we empirically assess how effective macroprudential policies are in curbing domestic credit growth, and whether their effectiveness is affected by monetary policy conditions. We obtain three important results. First our findings suggest in line with previous research that an overall tightening in macroprudential policies is associated with a reduction in credit growth. Second, we show that a restrictive monetary policy enhances the impact of macroprudential tightening on credit growth. Third, we find evidence that monetary policy helps to reduce the transmission delay of macroprudential policy actions. Consequently our results confirm the need for coordination between the two policies.

SSRN Electronic Journal, 2020

This paper aims to provide a comprehensive analysis of the potential conflicts between macroprude... more This paper aims to provide a comprehensive analysis of the potential conflicts between macroprudential and monetary policies within a DGSE model with financial frictions. The identification of conflicts is conditional on different types of shocks, different policy instruments, and different policy objectives (variance of key variables, probability of a crisis, growth-at-risk). We first find that conflicts are not systematic but are fairly frequent, especially in the case of supply-side and widespread shocks such as technology and bank capital shocks. Second, monetary policy and countercyclical capital requirements generate conflicts in many circumstances. By affecting interest rates, they both "get in all the cracks", albeit with their respective targets generally moving in opposite directions. Nonetheless, monetary policy could reduce its adverse financial side effects by responding strongly to the output gap. Third, loan-to-value caps, as sector-specific instruments, cause few conflicts. Thus, they can be easily implemented without concerns about generating potential spillovers, whereas smooth coordination is required between the implementation of capital requirements and of monetary policy.

RePEc: Research Papers in Economics, 2019

Considering a sample of 37 emerging and industrialised economies from 2000Q1 to 2014Q4, we empiri... more Considering a sample of 37 emerging and industrialised economies from 2000Q1 to 2014Q4, we empirically assess the effectiveness of macroprudential policies in curbing domestic credit growth, and whether this effectiveness is affected by monetary policy conditions. We obtain three important results. First, in line with previous research, our findings suggest that an overall tightening in macroprudential policies is associated with a reduction in credit growth. Second, we show that a restrictive monetary policy enhances the impact of macroprudential tightening actions on credit growth. Third, we find evidence that monetary policy helps to reduce the transmission delay of macroprudential policy actions. Consequently, results that we obtain confirm the need for coordination between both policies.

Social Science Research Network, 2024

Revue française d'économie, 2018

Depuis la crise financiere mondiale, les economies avancees comme les economies emergentes ont pr... more Depuis la crise financiere mondiale, les economies avancees comme les economies emergentes ont progresse dans la mise en place d’un nouveau cadre de politique macroprudentielle et la mise en œuvre de mesures macroprudentielles. Cet article presente un apercu de ces mesures et de leur efficacite, et s’attache a fournir un eclaircissement aux debats recents entourant la politique macroprudentielle. En particulier, il se focalise sur deux defis majeurs qui restent a relever dans la mise en œuvre de la politique macroprudentielle, a savoir la coordination avec la politique monetaire et l’architecture institutionnelle qui en decoule, et la coordination internationale des politiques macroprudentielles. Ces deux questions font aujourd’hui l’objet des plus vifs debats et des plus nombreuses contributions academiques, et le but de cet article est alors de realiser un point d’etape sur l’avancee des connaissances et ce qui reste d’ignorance a leur sujet, une decennie apres le declenchement de la crise.

Journal of Banking and Finance, Jun 1, 2022

This paper aims to provide a comprehensive analysis of the potential conflicts between macroprude... more This paper aims to provide a comprehensive analysis of the potential conflicts between macroprudential and monetary policies within a DGSE model with financial frictions. The identification of conflicts is conditional on different types of shocks, different policy instruments, and different policy objectives (variance of key variables, probability of a crisis, growth-at-risk). We first find that conflicts are not systematic but are fairly frequent, especially in the case of supply-side and widespread shocks such as technology and bank capital shocks. Second, monetary policy and countercyclical capital requirements generate conflicts in many circumstances. By affecting interest rates, they both "get in all the cracks", albeit with their respective targets generally moving in opposite directions. Nonetheless, monetary policy could reduce its adverse financial side effects by responding strongly to the output gap. Third, loan-to-value caps, as sector-specific instruments, cause few conflicts. Thus, they can be easily implemented without concerns about generating potential spillovers, whereas smooth coordination is required between the implementation of capital requirements and of monetary policy.

Revue française d'économie, 2018

Depuis la crise financiere mondiale, les economies avancees comme les economies emergentes ont pr... more Depuis la crise financiere mondiale, les economies avancees comme les economies emergentes ont progresse dans la mise en place d’un nouveau cadre de politique macroprudentielle et la mise en œuvre de mesures macroprudentielles. Cet article presente un apercu de ces mesures et de leur efficacite, et s’attache a fournir un eclaircissement aux debats recents entourant la politique macroprudentielle. En particulier, il se focalise sur deux defis majeurs qui restent a relever dans la mise en œuvre de la politique macroprudentielle, a savoir la coordination avec la politique monetaire et l’architecture institutionnelle qui en decoule, et la coordination internationale des politiques macroprudentielles. Ces deux questions font aujourd’hui l’objet des plus vifs debats et des plus nombreuses contributions academiques, et le but de cet article est alors de realiser un point d’etape sur l’avancee des connaissances et ce qui reste d’ignorance a leur sujet, une decennie apres le declenchement de la crise.

Journal of International Money and Finance, Nov 1, 2020

Considering a sample of 37 emerging and advanced economies from 2000Q1 to 2014Q4, we empirically ... more Considering a sample of 37 emerging and advanced economies from 2000Q1 to 2014Q4, we empirically assess how effective macroprudential policies are in curbing domestic credit growth, and whether their effectiveness is affected by monetary policy conditions. We obtain three important results. First our findings suggest in line with previous research that an overall tightening in macroprudential policies is associated with a reduction in credit growth. Second, we show that a restrictive monetary policy enhances the impact of macroprudential tightening on credit growth. Third, we find evidence that monetary policy helps to reduce the transmission delay of macroprudential policy actions. Consequently our results confirm the need for coordination between the two policies.

Journal of International Money and Finance, 2020

Considering a sample of 37 emerging and advanced economies from 2000Q1 to 2014Q4, we empirically ... more Considering a sample of 37 emerging and advanced economies from 2000Q1 to 2014Q4, we empirically assess how effective macroprudential policies are in curbing domestic credit growth, and whether their effectiveness is affected by monetary policy conditions. We obtain three important results. First our findings suggest in line with previous research that an overall tightening in macroprudential policies is associated with a reduction in credit growth. Second, we show that a restrictive monetary policy enhances the impact of macroprudential tightening on credit growth. Third, we find evidence that monetary policy helps to reduce the transmission delay of macroprudential policy actions. Consequently our results confirm the need for coordination between the two policies.

SSRN Electronic Journal, 2020

This paper aims to provide a comprehensive analysis of the potential conflicts between macroprude... more This paper aims to provide a comprehensive analysis of the potential conflicts between macroprudential and monetary policies within a DGSE model with financial frictions. The identification of conflicts is conditional on different types of shocks, different policy instruments, and different policy objectives (variance of key variables, probability of a crisis, growth-at-risk). We first find that conflicts are not systematic but are fairly frequent, especially in the case of supply-side and widespread shocks such as technology and bank capital shocks. Second, monetary policy and countercyclical capital requirements generate conflicts in many circumstances. By affecting interest rates, they both "get in all the cracks", albeit with their respective targets generally moving in opposite directions. Nonetheless, monetary policy could reduce its adverse financial side effects by responding strongly to the output gap. Third, loan-to-value caps, as sector-specific instruments, cause few conflicts. Thus, they can be easily implemented without concerns about generating potential spillovers, whereas smooth coordination is required between the implementation of capital requirements and of monetary policy.