In 2007, there was problems about the
subprime mortgage credits in America  since people could not pay credits back. That
situation caused a financial crisis all over the world. (Tiryaki & Y?lmaz, 2012).  Therefore, problems of financial system  became crucial issue  for all economies and establishing financial
stability gained importance. To be able say that  there is financial stability  in an economy , there must not be
fluctuations and crisis in the economy. (Gadanecz &
Jayaram, 2009) For example, 2008 global crises caused  fluctuations
in the pricies of financial tools in the financial markets, therefore crisis
spreaded quickly to the other economies. (Tüzün, 2014)  Therefore, there can not be talked
about financial stability. 

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give an answer to the question of what is macroprudential, there is no exact
explanations.  However, it can be said
that macroprudential policies are used to provide financial stability. There
are two ways to keep financial stability in the case of macroprudential policy.
Firstly, systematic risks have to be limited. Secondly, effects of systematic
shocks have to prevented before they spread. (Schwarcz,
2014)  Therefore, macroprudential
policies aims that(Brockmeijer at al., 2011 p.8);

–       Reduce
the financial instabilities,

Trying to reduce the rate of decline in
post-crisis growth, its sharpness and its impact on the economy,

To determine
the risk of transmission and spread  that
can put the system as a whole in danger, to find their connection and to deal
with them. Thus, the possibility of disruption of liquid financial transactions
for the real economy is minimized.





     After the global crises, central bank’s of
the developed countries started use expansionary monetary policies that helped
capital inflows to the developing countries.(Akça,
2017) Quick capital flows caused appreciation of currencies in  the developing countries.
This situation has brought about the deterioration of the
macroeconomic balances of the countries, especially the trade balance. This
process has shown that price stability is not enough to sustain macroeconomic
stability and that financial stability as a prerequisite must be efficiently
handled at domestic and foreign financial markets. Countries have begun to
apply macro precautionary measures aimed at controlling short-term capital
flows, which have become a major problem in terms of financial stability (CBT,
2013, p.2). When implementations of macroeconomic policies of a country
is examined, the scope of institutional reform is limited to the existing
legislation in developing countries. Macroprudential powers are often assigned
to the Central Bank in emerging markets (Jacome et al., 2011, p.9). It must
be given to one of the macro-prudential competent, an organ or a committee to
strengthen the decision-making desire. There are three models of macro
prudential policies in practice (Vinals, 2013, p.29-30):

       Model 1: Macro
prudential authorities are given to the Central Bank. Macro prudential decisions
are taken by the board (example: Czech Republic).

        Model 2: Macro
prudential authority is granted to a special committee in the structure of the
Central Bank (example: England)

         Model 3: Macro
prudential authority is granted to a committee of representatives from the
central bank and the government except for the Central Bank, which is away from
the macro precautionary committee (example: Australia, France, USA).

        Model 1 is a
model that the Central Bank has already integrated with relevant regulatory and
supervisory authorities. Model 2 helps the Central Bank against two risks by
creating decision mechanisms for money and macro prudential policies, although
both functions are under the Central Bank framework. At the same time, separate
decision-making bodies and external expertise may be involved. Model 3 easily
meets the strong role of the Ministry of Finance. The Ministry of Finance is
helping to develop macroprudential instruments or regulators.


impact of macroeconomic policy has not been empirically understood because of
three main reasons. First, it is too early to evaluate empirically the
effectiveness of the vehicles introduced only in the last few years. There is
very little analysis of what is needed in the literature to make empirical
research. Second, it is very difficult to do empirical work if there is no
defined model of the interaction between the financial system and
macroeconomics. The third is that taking macro precautionary measures together
with other policies, rather than separately, makes it difficult to assess the
effectiveness of these instruments. (Galati ve Moessner, 2013, p.859)


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