Unlike price stability, financial stability is not easy to define or measure given the
interdependence and the complex interactions of different elements of the financial system …

This paper reviews the challenges faced by central banks in recent years in order to
evaluate their policy implications going forward. To highlight the genuine uncertainty …

Historically, unusually strong increases in credit and asset prices have tended to precede
banking crises. Could the current crisis have been anticipated by exploiting this …

In recent decades, developments in the financial sector have played a major role in shaping
macroeconomic outcomes in a wide range of countries. Financial developments have …

Over the last decade or so, addressing financial instability has risen to the top of the policy
agenda. This essay argues that in order to improve the safeguards against financial …

We investigate whether leading indicators can help explain the cross-country incidence of
the 2008–09 financial crisis. Rather than looking for indicators with specific relevance to the …

A literature review showed that finance is a driver of sustainability. However, to achieve
sustainability through finance, it is necessary to rebuild and adapt the financial system to the …

This paper develops an index of financial stress for the Canadian financial system. It is a
continuous variable with a spectrum of values, where extreme values are called financial …

In most of the currency crises of the 1990s, the largest output falls have occurred in those
emerging economies with large currency mismatches, a phenomenon that occurs when …

Previous early-warning systems (EWSs) for currency crises have relied on models that
require a priori dating of crises. This paper proposes an alternative EWS, based on a Markov …