The 2007–09 Great Financial Crisis underscored the rationale for macro-financial stability frameworks, in both advanced economies (AEs) and emerging market economies (EMEs). Domestically, both AE and EME central banks have increasingly adopted macroprudential tools as a complement to monetary policy to better reconcile price and financial stability over longer horizons. Claudio Borio discusses the use of monetary, macroprudential and exchange rate policies, in both AEs and EMEs.
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