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I am looking for some good introductory papers or possible books on macroprudential regulation.

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    $\begingroup$ Let's keep it again again at one paper/book per post, so that users can vote on the individual suggestions. $\endgroup$ – FooBar Apr 13 '15 at 11:53
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    $\begingroup$ In order for this question to be as helpful as the answers it has received, I believe you should include a definition of "macroprudential regulation" , even if it would be only a working one. One-liner answers are not in the SE spirit -nor are one-liner questions. What are the characteristics of "macroprudential regulation" that distinguishes it from any other regulation,as you understand it or as you have found in your initial readings? $\endgroup$ – Alecos Papadopoulos Apr 14 '15 at 19:01
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It's not really introductory in the sense that it focusses on what Macro-Prodential means (reducing risk at the cost of efficiency), but rather applied: Martin and Philippon (2014) analyze the great recession in Europe and simulate to what end more macruprudential policies would have ameliorated the situation.

We provide a first comprehensive account of the dynamics of Eurozone countries from the creation of the Euro to the Great recession. We model each country as an open economy within a monetary union and analyze the dynamics of private leverage, fiscal policy and spreads. Our parsimonious model can replicate the time-series for nominal GDP, employment, and net exports of Eurozone countries between 2000 and 2012. We then ask how periphery countries would have fared with: (i) more conservative fiscal policies; (ii) macro-prudential tools to control private leverage; (iii) a central bank acting earlier to limit sovereign spreads; and (iv) the possibility to recoup the competitiveness they lost in the boom.

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A good historical survey is "The History of Cyclical Macroprudential Policy in the United States" by Elliot, Feldberg, and Lehnert:

Since the financial crisis of 2007-2009, policymakers have debated the need for a new toolkit of cyclical “macroprudential” policies to constrain the build-up of risks in financial markets, for example, by dampening credit-fueled asset bubbles. These discussions tend to ignore America’s long and varied history with many of the instruments under consideration to smooth the credit cycle, presumably because of their sparse usage in the last three decades. We provide the first comprehensive survey and historic narrative of these efforts. The tools whose background and use we describe include underwriting standards, reserve requirements, deposit rate ceilings, credit growth limits, supervisory pressure, and other financial regulatory policy actions. The contemporary debates over these tools highlighted a variety of concerns, including “speculation,” undesirable rates of inflation, and high levels of consumer spending, among others. Ongoing statistical work suggests that macroprudential tightening lowers consumer debt but macroprudential easing does not increase it.

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Restoring Financial Stability, a series of essays focusing on policies to address the issues that led to the most recent crisis, edited by Viral Acharya and Matthew Richardson, is good and accessible.

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