2 This view contrasts with an alternative approach, according to which crises arise largely as a result of ill-designed economic frameworks, including monetary, credit, and bank protection policies. Under this perspective, macroprudential instruments carry less weight, as the focus is on preventing policies from being the causes of the problems in the first place.
A second evaluation challenge has to do with the limited knowledge we have on the transmission mechanisms through which macroprudential tools operate. No commonly shared model is at hand to assess these instruments comprehensively. A third difficulty stems from scarce available data to test the tools consistently, especially those recently implemented.