Indicators of Financial Stability

This mornng the Bank of England published a letter from the Governor to Andrew Tyrie MP, Chairman of the Treasury Select Committee which is discussing financial stability policy. The letter provides some simple indicators that might be used to help monitor financial stability.

As Sir Mervyn says, “these indicators can only provide a snapshot, with the more complete picture reflected in the Bank’s most recent Financial Stability Report”. However, they do provide an excellent stimulus for a discussion with A2 students, and perhaps extension work with at AS, with bags of opportunity to add current and recent context and evaluative comment to macro work.