Discretionary power of national authorities can potentially lead to unequal governance structures and/or an unequal application of macro-prudential rules or instruments. Having said that, it has to be recognized that macro-prudential frameworks and policies are still in their infancy. The deeper nature of systemic instability remains to be fully understood. The development of tools to detect and assess risk is work in progress.
It remains the subject of comprehensive research, both in central banks and academia. In order to deepen, inter alia, our understanding of macro-prudential tools, the Banque centrale du Luxembourg recently signed a cooperation agreement with the Toulouse School of Economics (TSE), which is led by professor Jean Tirole who was awarded the Nobel prize in economics in 2014.