This chapter presents the main elements of central banks’ traditional functions as gatekeepers of monetary and broader financial and economic stability and outlines some emerging considerations relating to central banks’ enhanced role as guardians of public interest. With regard to the...

On regulating financial innovations / Eduardo Pol -- Important structural trends and developments in the foreign exchange and OTC derivative markets / Harvey Arbel(c)Øaez, E.K. Gatzonas -- The subprime market crisis, structured products in the securities credit markets, and hedge funds /...

"An NBER digest for this paper is available.There are two leading views on how financial crises turn into recessions. The first view highlights the importance of a troubled banking sector that cannot provide credit to domestic firms. The second view stresses the relevance of short-term borrowing...

Despite the scale of the global financial crisis, to date it has not resulted in a sovereign debt crisis among emerging market countries. Two significant factors in this outcome are the improved macroeconomic management and public debt management in these countries over the past decade. This...

The recent global financial turmoil raised questions about the stability of foreign banks’ financing to emerging market countries. W<span style="mso-bidi-font-size: 12.0pt;">hile foreign banks’ lending growth to most emerging market regions contracted sharply, lending to Latin America and the Caribbean (LAC) was significantly more...</span>