A fully operational model of macroprudential policy must include not only a decision rule for when to act, but also a conceptual framework capable of assessing and quantifying, as much as possible, all the important policy variables: the probability of experiencing a crisis, the expected loss in output given a crisis occurs, the likely effectiveness of whatever policy tool is being considered in reducing both the probability of the crisis and the associated output loss, and the cost of the policy itself.
Analytical tools must also be capable of assessing policy leakages.