Growing importance of macroprudential policy to deal with capital inflows Compared to advanced economies, a number of emerging economies had already installed some policy measures that are known today as macroprudential policy measures prior to the global financial crisis.
This is because it was considered in these economies that preventive measures to contain volatile capital inflows and mitigate resultant adverse impacts were an effective tool for mitigating financial and economic imbalances. This partly reflects the lessons learnt from the Asian currency crisis of 1997–98, when a sufficient structure for regulations and supervision of the banking sector had not yet been established.