Macroeconomists and financial sector experts need to talk to each other. Such communication is important to help identify and measure systemic risks as well as to coordinate and/or conduct macroprudential policies—rules that reduce instability across the financial system.
The creation of financial stability committees, including in Latin America, have been a forum for precisely this—working together to share information about evolving risks, develop monitoring and mitigating tools, and to define the decision-making authority, accountability, and communication to the general public. But institutional design and governance of these councils differ across countries.
Filed under: Economic Crisis, Economic outlook, Economic research, Emerging Markets, Español, Financial Crisis, Fiscal policy, Government, growth, IMF, International Monetary Fund, Latin America, Public debt | Tagged: Brazil, capital flows, central bank, Chile, financial stability, Latin America, Mexico, monetary policy, Peru | Leave a comment »