Spanish boom-bust and macroprudential policy

Abstract

In this paper we review the experience of the last Spanish boom and bust to cast some reflections on macroprudential policy. These reflections take place in a country, Spain that is a (relatively small) member of a larger monetary union, which also has a single banking microsupervisor as well as a central bank, the ECB that can top-up national macroprudential decisions. Beyond the euro zone, the experience of the Spanish lending boom-bust maybe also interesting for other policy makers, with a full array of tools to tame the lending cycle.