By Markus Behn, Jan Hannes Lang and Eugen Tereanu
One important lesson learned from the use of capital-based macroprudential policies in recent years is that tightening such policies during boom phases is unlikely to have a notable impact on credit supply and the build-up of imbalances, while the accumulated resilience and the release of buffers in downturns produces large benefits.
Link: Transmission and effectiveness of capital-based macroprudential policies