Introduction

The longer market participants delay acknowledging the tightening stance of central banks, the higher likelihood that buoyant valuations would keep supporting inflationary pressures. The authors find that monetary policy tightening is more likely to usher in financial stress when debt levels are high and there have been large recent rises in inflation. Conversely, prudential policy tightening, whether before or during a monetary tightening, helps to reduce the likelihood of financial stress. And with that, I'll now give the floor to Huynh who will talk about the special features of our quarterly review.