By the same token, the positive growth spillovers between AMEs and EMEs 4  BIS central bankers’ speeches  suggest the need for a global jurisdiction, that can internalize such externalities in order to maximize growth. But the reality is very far from one characterized by existence of a global jurisdiction, and better described as one of a non-cooperative equilibrium.
That is why independent policy instruments are needed to address each policy objective. 7 Macroprudential policies are now commonplace. They are generally regulatory policies or instruments with the specific objective of mitigating risks to financial stability. They complement monetary policy in two key ways.