A toolkit for financial stability

An earlier article1 argued that the EU's new member states in Central Europe and the Baltic region are not typical emerging markets, and that straight analogies from other regions can be misleading. In some respects these countries have hardwired financial stability - through the elimination of quasi-fiscal deficits; the impact of foreign-owned banks; trade and investment links with other EU members; exchange regimes that are flexible rates or hard pegs; and through a resolve, in supervision, to

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