We propose a framework for addressing the ‘black box' problem present in some Machine Learning (ML) applications. We implement our approach by using the Quantitative Input Influence (QII) method of Datta et al (2016) in a real‑world example: a ML model to predict mortgage defaults. This...

Capital inflows come in all shapes and sizes. This paper highlights that equity flows, especially foreign direct investment, are the most stable forms of capital inflows. In contrast, debt inflows from banks particularly in foreign currency are most prone to booms and busts. These flows also...

Financial globalisation brings a number of benefits but can also increase the risk of financial crisis. In recent years, to reduce these risks to stability, countries have reformed financial regulation, enhanced frameworks for central bank liquidity provision and developed new elements, and...