Macro-prudential policy needed to dampen financial sector's pro-cyclicality features and help global economic recovery

As a part-time financial columnist for China Daily since August 2010, I am encouraged to provide monthly personal views to the newspaper even though I have moved to a new position.

At the just-concluded annual session of the National People's Congress, the Chinese government pledged a new policy for macro-prudential regulation. As a response to the global financial crisis, macro-prudential regulation policies have been established or planned in more and more countries over the past few years.