Monetary and Macroprudential Policies in a Volatile Global Era: A Conceptual Review of Systemic Resilience

Abstract

This conceptual review examines how monetary and macroprudential policies can be coordinated to strengthen systemic resilience during periods of global volatility. It focuses on the institutional quality of macroprudential strategies, inter-agency coordination, policy transmission, and the integration of regulatory instruments across selected jurisdictions. The study applies a comparative institutional mapping approach to 30 jurisdictions over 2014–2023 and uses the Macroprudential Strategy Quality Index to assess transparency, legal mandates, and decision-making processes. The review indicates that formal, transparent, and predictable policy frameworks are associated with stronger institutional preparedness for financial shocks. It also shows that countercyclical capital buffers, borrower-based measures, and coordinated policy toolkits may moderate credit-cycle vulnerabilities and support monetary policy transmission. Particular attention is given to non-bank financial intermediation, where system-wide supervision, proportionality, ex ante resilience, adaptive flexibility, and international cooperation are important for limiting the amplification of risk. The analysis further considers recent capital-buffer adjustments and macroeconomic pressures across EBRD regions. Overall, the review suggests that macroprudential policy is most effective when it operates as a complement to monetary policy within a clearly defined governance framework in both advanced and emerging market economies. However, the findings remain conceptual and should be tested through empirical models using granular financial and institutional data.