Policy insights

Policy Insights

Policy Insight 40: Liquidity Risk Charges as a Macroprudential Tool

Liquidity risk charges were proposed in February 2009 as a new macro-prudential tool to discourage systemic risk creation by banks. A new CEPR Policy Insight refines this proposal in order to clarify challenging issues surrounding the implementation of liquidity risk charges.

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Perotti, E, C Vegh and E Mendoza (eds)