The COVID-19 crisis has exacerbated the many challenges that developing and emerging economies are confronted with. Especially in the face of the expected unwinding of emergency policy measures, such as the G20 debt service suspension initiative, and the tightening of monetary conditions to curb...

This paper presents a novel conceptual and methodological approach to measuring financial conditions in developing countries drawing on dynamic factor analysis. Our theoretical foundation to construct and interpret the model is based on a Minskian framework of financial instability....