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macroprudential policy question A) Macroprudential policy. Massive amounts of capital inflow into EM were a double-edge sword: it raised the liquidity needed to finance higher

macroprudential policy question

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A) Macroprudential policy. Massive amounts of capital inflow into EM were a double-edge sword: it raised the liquidity needed to finance higher growth, but it also elevated the risk of financial instability. In response, many EM economies undertook the necessary macroeconomic and macroprudential policy response. Explain the difference between macroeconomic (monetary) policy and macroprudential policy.-5%

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