supervision ( 2015 ), regulatory consistency assessment programme – mexico, bank for international settlements, march. bis central bankers ’ speeches finally, initial progress has been made in addressing some of the potential risks in the nonbank sector, specifically by imposing limits on leverage undertaken by real estate investment trusts. regarding financial markets, the capital account is totally open, with no restrictions on portfolio capital flows. also, mexico uses a floating exchange rate regime. the policy emphasis has been on the creation of deep spot and forward foreign exchange ( fx ) markets, as well as on enhancing the liquidity of the domestic bond market. mexico ’ s currency market is the most liquid among those of all emerging economies. 13 mexico does not rely on capital flow management, especially in light of its negative experience with controls during the 1980s. instead, in cases of extraordinary market volatility and particularly amid low liquidity, the country sometimes uses marginal rule - based fx intervention, mostly as a way to send a signal of confidence to market participants. this framework proved itself sufficiently solid during the recent global financial crisis. in particular, throughout 2008 and 2009, banks remained resilient to external shocks, maintaining strong balance sheets. this result reflects the crucial role of a sound macroeconomic framework, including a sustainable and disciplined fiscal position, monetary policy aimed at controlling inflation, and a coherent regulatory and supervisory regime for financial institutions. this does not mean that mexico is free of possible dangers going forward. thus, the need to buttress macroeconomic policy and closely monitor possible risks and vulnerabilities that might endanger financial stability. the world faces an unprecedented situation, given years of abundant liquidity and cheap credit. the risks might not be the same as those in the wake of previous crises, and new pitfalls will certainly appear along the way. the global search for yield in a context of lax monetary policies in advanced nations has led to substantial capital flows to emerging economies, including mexico. in the near term, u. s. monetary normalization could be a precursor of a sudden stop or even a reversal of external funds, and induce a destabilizing drop in asset prices. in the face of this and other risks, the authorities must remain vigilant. conclusions evaluation of macroprudential policies faces significant measurement challenges which make methodological progress necessary. thus, any assessment should be taken with caution. evidence on their effectiveness is still cursory, but much of it points towards the conclusion that macroprudential tools help make

effects, but the difference is negligible in downturns. 5 a second set of cross - country studies, while continuing to indicate material effects from specific macroprudential tools on credit growth, find that impacts from others are minor or even run in the opposite direction. one of them indicates that countercyclical capital buffers may have null or negative effect, while another demonstrates the bearing from capital surcharges on systemically important financial institutions not to be significant. 6 a third group of research, based on individual countries, indicates immaterial or adverse influence on credit expansion from applying certain tools. in particular, one study discovers see, for example, borio, c. ( 2014 ), “ macroprudential policy and the financial cycle : some stylized facts and policy suggestions, ” in akerlof, g. a., et al. ( eds. ), what have we learned? macroeconomic policy after the crisis, imf and mit. for a thorough discussion of measurement issues, see hansen, l. p. ( 2013 ), “ challenges in identifying and measuring systemic risk, ” in brunnermeier, m. and a. krishnamurthy ( eds. ), risk topography : systemic risk and macro modeling, nber. for a survey of recent empirical research, see galati, g. and r. moessner ( 2014 ), “ what do we know about the effects of macroprudential policy, ” dnb working paper no. 440, september, section 4. lim, c., et al. ( 2011 ), “ macroprudential policy : what instruments and how to use them? lessons from country experiences, ” imf working paper wp / 11 / 238 ; and mcdonald, c. ( 2015 ), “ when is macroprudential policy effective? ” bis working papers no. 496, march. claessens, s., et al. ( 2014 ), “ macro - prudential policies to mitigate financial system vulnerabilities, ” imf working paper wp / 14 / 155, august ; and cerutti, e., et al. ( 2015 ), “ the use and effectiveness of macroprudential policies : new evidence, ” imf working paper wp / 15 / 61, march. bis central bankers ’ speeches that in the united states, bank capital and liquidity ratios have a much smaller impact than