Macroprudential policies, commodity prices and capital inflows

This paper starts with an overview of the importance of commodity exports for African economies. We then make the case for macroprudential policies and provide a catalogue of some of the tools that have been implemented or considered for use. Issues related to the practical use of these policies, and their interaction with other policies – specifically monetary policy and capital controls – are subsequently considered. Finally, governance issues – what institutions are given which responsibilities in this area – are raised.Full publication: The Role of Central Banks in Macroeconomic and Financial Stability