One reason that structural models are useful is that they allow us to assess the relationship between exchange rate depreciation and consumer price inflation for a wide array of specific shocks, some of which may be regarded as potential risks to the outlook for inflation and real activity.
Basel II The attempts at harmonising the capital adequacy standards internationally date back to 1988, when the “Basle Committee on Banking Regulations and Supervisory Practices”, as it was then named, released a capital adequacy framework, now known as Basel I. This initiative set out the first internationally accepted framework for measuring capital adequacy and a minimum ratio to be achieved by the banks.