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What is Micro vs Macro-Prudential Financial Stability about?

1) The document discusses distinguishing the micro-prudential and macro-prudential dimensions of financial stability. Micro-prudential focuses on limiting individual institution failure, while macro-prudential aims to limit systemic risks and costs to the economy from financial distress. 2) Key differences include macro-prudential considering systemic significance and correlations between institutions, while micro-prudential treats each institution separately. Macro-prudential also views system outcomes a

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