The global financial crisis has tested the effectiveness of supervision under the “Twin Peaks†model. The crisis revealed the strengths of the “Twin International Peaks†model, as decisions were able to be made in a timely manner to contain the crisis, and clear divisions of...

This 2014 Article IV Consultation highlights that the Dutch economy continues to improve, supported by exports, rising housing prices, and improving sentiment. Exports are rising on expanding global trade, but consumption remains sluggish as indebted households continue to save. The external...

KEY ISSUES Context: The union’s current account deficit–the key economic vulnerability flagged in the previous (2011) consultation–has declined over the past few years, including thanks to fiscal adjustment in Curaçao. But it remains large. Curaçao’s growth and job creation remain...

This paper quantifies financial spillovers from global risk factors to banks’ funding costs in Chile. It decomposes Chilean banks’ bond and interbank spreads into domestic and external factors. The results suggest moderate spillovers. On average, global spillovers pushed up bank...

This paper constructs a financial conditions index for Poland to explore the link between financial conditions and real economic activity. The index in constructed by applying two complementary approaches—factor analysis and vector auto-regression approach. We evaluate the index’s...

The degree of an economy’s monetization, which has an important implication on economic growth, can be affected by the conduct of monetary policy, financial sector reform, and episodes of financial crises. The paper finds that monetization--measured by the ratio of broad money to nominal...

We demonstrate empirically that not all capital flows influence exchange rates equally: Capital flows induced by foreign investors’ stock market transactions have both an economically significant and a permanent impact on exchange rates, whereas capital flows induced by foreign...