The world is presently buffeted by many challenges, some of which manifest in new forms, such as Fintech and cryptocurrencies, while some challenges prevail out of the legacy trailed behind by the 2007 global financial crisis. Financial stability represents a highly complex and multi-dimensional concept. This being so, sound and holistic financial stability assessment requires that the authorities focus not only on local but also on international developments.
Economic Areas Under Financial Stability examines several core areas which interact directly with financial stability. A comprehensive consideration is given of local and international developments, the payment and settlements system, reserves, derivatives and exchange rates. The book examines capital reserves and liquidity reserves for financial institutions at large, the systematic risks which characterise the payment and settlements system, different instruments of derivatives, and the importance of fiscal and monetary policy in relation to exchange rates. All are considered on a local and international level.
This book will prove valuable to central bankers, economists and policy-makers who are involved in the field of financial stability, as well as researchers studying the field.