While these market-based measures are not perfect and need to be adjusted for liquidity and term premium factors, they can provide a useful signal about market inflation expectations, which can be combined with signals from surveys of expected inflation to get a read on inflation expectations.
-7information on how stress may manifest, not just in the firm overall, but in each jurisdiction where it operates. More information sharing by home to host supervisors may help convince host supervisors that they need fewer pre-positioned resources in their jurisdiction. Today’s workshop is a worthy step forward in discussing these issues, and towards preserving and expanding the benefits of cross-border finance.