Informed by academic research, some of it in-house, we at the Federal Reserve focus on four broad cyclical vulnerabilities: (1) financial-sector leverage, (2) nonfinancial-sector borrowing, (3) liquidity and maturity transformation, and (4) asset  2  See Adrian, Covitz, and Liang (2015).
Introduction  Thank you for the invitation to address one of your series of breakfast meetings, coming as it does only a couple of weeks after the last of a number of memorable and spectacular events marking the Centenary Celebrations of the Country Club Johannesburg.