Macro-prudential regulation does a better job of shielding an economy from global financial shocks than capital controls, research published by the Bank for International Settlements finds.

The working paper presents “strong evidence” that emerging markets’ efforts to tighten macro-prudential policy have reduced the sensitivity of GDP growth to global shocks.

Authors Katharina Bergant, Francesco Grigoli, Niels-Jakob Hansen and Damiano Sandri explore several aspects of the “dampening effects”