Read more about the article Walking on the Wild Side – Monetary Policy and Prudential Regulation

Walking on the Wild Side – Monetary Policy and Prudential Regulation

Global financial integration and the linkages between the financial and the real sides of economies are sources of huge policy challenges. This is now beyond doubt, after what we saw in the run-up to and the unfolding of the 2008 global financial crisis. As a consequence, the established wisdom regarding monetary policies and prudential regulation has been subject to a deep critical review, including a demise of the belief that they should be maintained as fully independent functions.

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Read more about the article Brazil, Korea: Two Tales of a Macroprudential Regulation
Kajiado, Kenya 2010

Brazil, Korea: Two Tales of a Macroprudential Regulation

There are still serious questions on how to proceed with the complementary use of prudential regulation and monetary policy. While there are already lessons from emerging markets’ use of the macroprudential policy toolkit, more experience and analysis, particularly on its interaction with monetary policy is needed.

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Read more about the article Elephants and Macro-Financial Linkages

Elephants and Macro-Financial Linkages

Emerging Markets (EMs) are more likely to suffer shocks, such as commodity-price and terms-of-trade shocks, as well as surges and sudden stops in capital flows.. Furthermore, structural and institutional features typical of most EMs tend to amplify and propagate shocks. Even when asset price-led cycles are not generated within EMs, they tend to be affected the most due to capital flows.

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Read more about the article The Cost of Financial Reform for Emerging Markets
The Akuapem Rural Bank Ltd., founded in 1980, in the town of Mamfe, Ghana, June 19, 2006. (Photo by Jonathan Ernst)

The Cost of Financial Reform for Emerging Markets

  In the aftermath of the global economic crisis, financial market regulators have proposed a myriad of reforms to better govern the banking sector and to enhance its resilience to…

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