The COVID Review - Special Features and Boxes

Claudio Borrio: Let me describe some of the special features in this quarterly review and two boxes. The box by Ben Cohen and Kevin Trukole examines the fluctuations in model-based derivative margins, both during the market stresses in March 2020 and during the guilt market stress episode last year. In the first special feature, Frederic Bose, Claudio Borrio, Cristina Leonte and Iliap Shym examine how monetary policy and prudential policy interact. They 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,