Dadashova, PervinJonsson, Magnus2020-07-242020-07-242019Dadashova P. A. Mitigating the Cost of Stricter Macroprudential Policies : [working papers] / P. Dadashova, M. Jonsson ; National Bank of Ukraine - Kyiv : [National Bank of Ukraine], 2019. - 20 p.https://ekmair.ukma.edu.ua/handle/123456789/17725We examine how to implement macroprudential policies – stricter capital requirements and loan-tovalue limits – in order to mitigate the output loss of corporate debt deleveraging. The analysis is performed in a dynamic general equilibrium model calibrated to fit the U.S. economy. Stricter capital requirements are generally costlier in terms of output losses than stricter loan-to-value limits. For both instruments, the output loss is a convex function of the debt-to-GDP ratio. Finally, the output loss can be significantly reduced by implementing the requirements gradually, and by activating a countercyclical capital buffer.encapital requirementsloan-to-value requirementsoutput lossgradual implementationworking papersWorking Paper