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This policy note summarises the main empirical findings on the effectiveness of macroprudential policy: macroprudential policy contributes to a stronger and less volatile growth and is more effective in tightening than in easing episodes; borrower-based instruments are more effective in moderating credit growth, whereas lender-based instruments are more effective in increasing bank resilience; combinations of different types of instruments contribute to a more effective macroprudential policy; macroprudential policy produces important distributional effects and it is subject to regulatory arbitrage and circumvention.
