This paper presents the Banco de España’s reference framework for the analysis of macroeconomic and financial risk, and the impact of the materialisation of this risk on financial stability and the real economy. The framework encompasses a broad set of empirical and theoretical models and...

Almost four years after the collapse of Lehman Brothers, the monetary policy stance in most advanced economies remains extraordinarily loose, with policy rates close to zero and a number of non-conventional stimuli still in place. The resulting prominence of monetary policy responds, first, to...