Everybody right, everybody wrong: Plural rationalities in macroprudential regulation

March 18, 2016 Policy

Macroprudential policy has become increasingly popular in the aftermath of the Global Crisis, but it remains controversial. This column argues that vigorous disagreement is both inevitable and healthy, reflecting differing fundamental views of how the financial system really works. By embracing the divergence of views instead of seeing it as problematic, macroprudential policymaking will be made easier and more effective. åÊ