In this paper, we exploit variation in consumer price inflation across 71 Russian regions to examine the relationship between the perceived stability of the local currency and financial dollarisation. Our results show that regions with higher inflation experience an increase in the dollarisation...

We review the likely impact of Basel III regulation within the European Union’s new member states, based on system-wide financial stability indicators and responses to consultation processes from national central banks and banking groups. Fresh regulations on liquidity ratios are likely to...