A number of advanced countries have adopted sophisticated models to conduct macroeconomic and financial sector surveillance. However, other developing countries, given the data limitations and size of financial sector, have adopted simpler frameworks for assessment of financial stability. 5.
In assessing macroeconomic vulnerabilities it is standard to examine the sustainability of the fiscal and external accounts – any drift in these two principal modules of the economy creates monetary complications and can generate instability in both domestic and foreign  1  Mishkin, F. (1991): “Anatomy of financial crisis,” NBER Working Paper, No. 3934. BIS Review 56/2008  1  exchange markets.