Using a recent IMF survey and expanding on previous studies, we document the use of macroprudential policies for 119 countries over the 2000-13 period, covering many instruments. Emerging economies use macroprudential policies most frequently, especially foreign exchange-related ones, while advanced countries use borrower-based policies more. Usage is generally associated with lower growth in credit, notably in household credit. Effects are less in financially more developed and open economies, however, and usage comes with greater cross-border borrowing, suggesting some avoidance. And while macroprudential policies can help manage financial cycles, they work less well in busts.

Macroprudential policies such as caps on loan to value and debt to income ratios, limits on credit growth and other balance sheet restrictions, (countercyclical) capital and reserve requirements and surcharges, and Pigouvian levies have become part of the policy paradigm in emerging markets and advanced countries alike. While macroprudential policies are being increasingly used, notably so since the global financial crisis, information on what policies are actually used across a large set of countries is still quite limited. And related, relatively few analyses exist on what policies are most effective in reducing procyclicality in financial markets and associated systemic risks. This paper aims to fill these two gaps. It first describes the usage of a large number of macroprudential policies, to be precise, for a large, diverse sample of 119 countries over the 2000-13 period. And second, it studies the relationships between the use of these policies and developments in credit and housing markets, with a view to analyzing the effectiveness of these policies in managing credit and financial cycles. This database and related research are made possible by a recent survey of country authorities conducted by the International Monetary Fund. The survey includes detailed information on the timing and use of different macroprudential policies and to the best of our knowledge, is the most comprehensive database on macroprudential policies to date. This is the first paper to analyze this new survey.