An international debate has now begun on how authorities might directly change the behaviour of financial market participants to mitigate the risks identified in Financial Stability Reports. This debate, in part, is focusing on whether central banks need specific powers to intervene directly in this regard.
Under the revised guiding framework, surveillance will focus on the four pillars of macroeconomic policy – exchange rate, monetary, fiscal, and financial policies – as they affect external stability. In implementing improved surveillance, it will be important to better integrate financial sector analysis and assessments into country reviews, and to take a broader, multi-country perspective.