As you may know, a highlight of the traditional Passover meal occurs when the youngest child asks four questions, the answers to which tell the history of the Jews when they were slaves in Egypt and during their exodus to the Promised Land. In the spirit of the holiday, today I will pose and answer four important questions about the financial crisis.
Central banks in EMEs have supported the withdrawal of monetary accommodation with successive increases in cash reserve requirements and in the application of non-monetary measures. In India and China, in particular, the use of cash reserve requirements has been more frequent than in other EMEs (Table 5).