Open AccessMacro-prudential Policy and its Impact on the Reduction of Systemic Risk
Author(s) -
Michał Tuszyński
Publication year - 2019
Publication title -
perspektywy kultury
Language(s) - English
Resource type - Journals
eISSN - 2719-8014
pISSN - 2081-1446
DOI - 10.35765/pk.2019.2502.07
Subject(s) - macro , systemic risk , representation (politics) , work (physics) , macro level , economics , business , risk analysis (engineering) , macroeconomics , computer science , financial crisis , political science , engineering , programming language , mechanical engineering , politics , law
The main objective of this paper is a holistic representation of the idea of macro-supervision, pointing to the need for its implementation and demonstration based on research and historical data that macro-prudential policy can significantly prevent the materialization of systemic risk in the banking business. This means that it will be able to counteract this risk in both temporal and structural terms, translating into better functioning of the real economy, which the financial system primarily serves. The article will present the history of the idea of macro-supervision and its concept in the light of different economic schools. Next, the characteristics of the financial system, sources of systemic risk and macro-prudential policy objectives will be shown. Attention will also be given to the other objectives of this idea. In the next stage of work, a range of policy instruments will be presented.