Debt-Related Vulnerabilities and Financial Crises: Occasional Paper. 240

by Brad Setser, Ioannis Halikias, Alexander Pitt

The analysis of currency and maturity mismatches in sectoral balance sheets has increasingly become a regular element in the IMF’s tool kit for surveillance in emerging market countries. This paper describes this so-called balance sheet approach and shows how it can be applied to detect vulnerabilities and shape policy advice. It also provides a broad-brushed overview of how balance sheet vulnerabilities have evolved over the past decade and cites a number of case studies.

49 pages, Kindle Edition

Published October 24, 2005