Decomposing financial (in)stability in emerging economies

摘要: Abstract The analysis of the build-up risks in emerging economies have traditionally been scarce and focused mostly on external risks, despite recent substantial development their financial system. This paper builds an index vulnerabilities tailored to economies, grouping 32 indicators around four poles: valuation risk appetite, imbalances non-financial sector, sector vulnerabilities, global vulnerabilities. It adopts a model-free approach, purposely departing from early warning models or complex econometric constructs, rely data made already available by international organisations. Our enables granular mapping where originates how it spreads other parts Using various visualisation tools benefitting flexibility our index’s methodology, we are able build narrative evolution stability 2005 2015. Finally, also discuss relation between both business cycle (proxied GDP) credit credit-to-GDP gap).