First, the framework contains provisions regarding the decision-making process and the interaction of relevant stakeholders such as regulators or market participants. This is an important element of transparency and accountability of the FSB. Second, the framework provides guidance on analytical aspects of evaluations and engenders a common understanding of what constitutes “good” evaluations and robust evidence.
Regarding analytical guidance, the framework stipulates that each FSB evaluation should answer three key questions. First, did the reforms “cause” an outcome (“Attribution”)? Second, did the reform have similar effects across markets, states of the world, or jurisdictions and regions (“Heterogeneity”)? Did the reform achieve its overall objective (“General equilibrium”)?