Within the context of a practical framework for safeguarding financial stability - entailing both prevention and resolution - this paper discusses the practical boundaries and challenges of assessing financial stability. The paper characterises the financial stability challenge, discusses...

The article provides empirical evidence on the effects of monetary policy shocks in the three largest new European Union (EU) economies: Czech Republic, Hungary and Poland. Vector autoregression (VAR) system estimates show that the co-movement of macroeconomic variables, conditional on a...

In 2010 authorities have taken the first steps to end some of the public support measures put in place in response to the financial crisis, starting with government guarantees for bond issues. Financial institutions have made extensive use of this tool, which has been effective in avoiding a...

This paper discusses the effect of cross-border deposits (CBDs) for the stability of the relation between monetary aggregates and nominal GDP in the five largest EC countries. The analysis is developed in terms of “information content” of alternative money definitions (including or excluding...

The government guarantees on bank bonds adopted in 2008 in many advanced economies to support the banking systems were broadly effective in resuming bank funding and preventing a credit crunch. The guarantees, however, also caused distortions in the cost of bank borrowing. Their reintroduction...