This paper examines the rise of non-bank financial intermediaries (NBFIs) and its implications for financial stability and monetary policy transmission in the Euro Area and the United States. While the U.S. financial system has long been market-based, the Euro Area has experienced a striking...

The United States experienced an unprecedented increase in unemployment insurance (UI) claims beginning in March 2020. State UI-benefit systems were strained beyond their administrative capacity to process the dual challenge of an unprecedented increase in claims and changes to UI benefits. In...

The importance of policy coordination between fiscal and monetary policy authorities has become more apparent, in the face of unexpected economic shocks and persistent macroeconomic challenges. In this paper, we employ the Set-Theoretic Approach (STA) to explicitly measure the presence of...

The 2×2 game is the simplest non-trivial model of strategic interaction: there are two players, each has two strategies, and each has a strict preference ranking over the four possible outcomes. For models of play that depend only on the ranking of the outcomes, the catalog of 2×2 games...

This paper focuses on the Republic of Azerbaijan's Financial Sector Assessment Program as part of Financial System Stability Assessment. Azerbaijan's economy has recovered from two downturns prompted by the collapse of global oil prices in 2015 and coronavirus disease 2019 pandemic in 2020. An...

We examine the impact of government size on economic fluctuations and the role of fiscal policy in promoting macroeconomic stability in the period 1980-2024. The results indicate that indirect taxes, capital taxes, and social security contributions (as a percentage of GDP) are associated with...

India's financial system has withstood the pandemic well and has become more resilient since the 2017 FSAP. Nonbank financial institutions (NBFIs)-especially nonbank financial companies (NBFCs) providing credit with wholesale financing-and market financing have grown, making the financial system...

This paper examines the redistributive impact of fiscal policy-specifically taxes and transfers-on poverty and inequality in eight countries in the Middle East and North Africa: the Arab Republic of Egypt, Djibouti, the Islamic Republic of Iran, Iraq, Jordan, Morocco, Tunisia, and the West Bank...

This study uses the 2021 wave of the FINRA National Financial Capability Study dataset to examine the association between large and unexpected income drops experienced by individuals during the COVID-19 pandemic and an individual's use of stimulus checks to settle debt obligations. This study...

Theoretical analysis, empirical development and case studies show that room to manoeuvre stabilising macroeconomic policies during the COVID-19 crisis in the years 2020 and 2021 were fundamentally different in the Global South and Global North. The latter used extensive discretionary fiscal and...

Österreichs Wirtschaft erholt sich zaghaft von der zwei Jahre andauernden Rezession. Für 2025 wird ein schwaches BIP-Wachstum von 0,6 % erwartet. 2026 und 2027 beschleunigt sich dieses auf 0,8 % bzw. 1,1 %. Die schwache Wirtschaftsentwicklung hinterlässt ihre Spuren auf dem Arbeitsmarkt. Die...

This paper studies the effects of fiscal policy announcements on household expectations. We document announcements of price-related expansionary fiscal measures in response to the cost-of-living crisis in the four largest euro area economies and exploit the exogenous timing of fiscal actions...

This paper examines the stability of self-control over time using nationally-representative longitudinal data from Australia. We track the same individuals between 2019 and 2023, a period encompassing one of the most disruptive global crisis in recent history: the COVID-19 pandemic. Despite...

Economic shocks-arising from pandemics, natural disasters, financial crises, or geopolitical conflicts-pose significant challenges to governments, requiring swift and effective fiscal responses. This study employs a Generalized Method of Moments (GMM) estimation to analyze time-series data from...

The paper investigates the properties of Poland’s Stabilizing Expenditure Rule (SER) in the context of economic governance reform in the EU. The analysis uses a granular macroeconometric model (Chmura et al., 2024) that incorporates heterogeneous fiscal multipliers across expenditure items and...

Banking supervision has significantly strengthened since the last Financial Stability Assessment Program (FSAP). The European Central Bank (ECB), in cooperation with the national competent authorities (NCAs), is exclusively responsible for the prudential supervision of credit institutions...

This note discusses the assessment of systemic risks within Non-Bank Financial Institutions (NBFIs) as part of the Financial Sector Assessment Program (FSAP) for the euro area (EA). It outlines the assessment of counterparty credit risk related to Central Counterparties (CCPs) and the potential...

This technical note (TN) focuses on the euro area (EA) banking sector, which has weathered a succession of shocks over the past few years with notable resilience. Strong starting capital positions, ample liquidity and a diversified deposit base allowed banks to absorb the effects of the COVID-19...

Progress has been made in several areas highlighted in the 2018 FSAP (Appendix I). Most notably the European Central Bank (ECB) strengthened its liquidity monitoring framework and modified the central clearing counterparty (CCP) credit facility. A key recommendation of the 2018 FSAP to...

This Technical Note focuses on Insurance Micro and Macroprudential Supervision in the euro area (EA). The institutional framework for insurance regulation and supervision in the EA has evolved gradually, with significant legislative processes still in development at the time of the financial...

(SRB) have become well-established. They have improved cooperation with each other, with national authorities, and with other financial sector participants, and developed detailed contingency plans for crisis situations. Industry understanding of their objectives and priorities has grown...

The institutional framework for macroprudential policy in Euro Area (EA) is complex, but in line with IMF guidance. While the European Systemic Risk Board (ESRB) is responsible for the macroprudential oversight of the European Union (EU) financial system as a whole, there is a clear designation...

The Swiss COVID-19 fiscal policy dataset includes detailed information on all fiscal support policies adopted in Switzerland in response to the COVID-19 pandemic. Covering the period from February 2020 to February 2021, the dataset includes both quantitative and textual information about nine...

Effective policies to stabilize macroeconomic conditions are essential for economic growth. In the context of this study, policymakers pursue these macroeconomic stability objectives by adjusting fiscal and monetary policy. The study used impulse response functions (IRFs) derived from vector...