Global Financial Stability Report for an analysis of housing finance and financial stability, and the October 2016 Fiscal Monitor for an analysis of private versus public sector debt. The main findings are as follows: • On average, an increase in household debt boosts growth in the short term but may give rise to macro- The current medium-term development plan is the last phase of the 20-year plan. It aims to further strengthen Indonesia’s economy by improving the country’s human capital and competitiveness in the global market. With its economy impacted by the pandemic, Indonesia went from upper-middle income to lower-middle income status as of July 2021. The effect of digital finance on financial stability. Management Science Letters 11: 1979–84. [Google Scholar] Saha, Mallika, and Kumar Debasis Dutta. 2020. Nexus of financial inclusion, competition, concentration and financial stability: Cross-country empirical evidence. Competitiveness Review: An International Business Journal 31: 669–92 As the COVID-19 pandemic and its economic fallout continue, policymakers keep a watchful eye on the stability of the financial system. Having learned many lessons from the financial crisis of 2007–2009, they may again turn to that crisis for insights into potential vulnerabilities emerging in the financial sector and ways to make financial markets and institutions more resilient to shocks. Exchange rate flexibility helps countries adjust to the differential pace of monetary policy tightening across countries. In cases where exchange rate movements impede the central bank’s monetary transmission mechanism and/or generate broader financial stability risks, foreign exchange intervention can be deployed. First, it builds upon the most recent findings in this area to develop an aggregate financial stability index that measures financial stability levels in nine countries geographically belonging to the Balkan region, entirely or at least in part. Most importantly, this index juxtaposes some well known IMF- backed Financial Soundness and Key Takeaways. Financial stability defines the financial system of a country based on the availability of resources, utilities, loans, and employment opportunities. Economic stability is measured using GDP, inflation, fiscal deficit, trade deficit, interest rates, employment levels, income inequality, and cash flows. The April 2017 Global Financial Stability Report (GFSR) finds that financial stability has continued to improve since last October. Economic activity has gained momentum and longer-term interest rates have risen, helping to boost the earnings of banks and insurance companies. Despite these improvements, however, threats to financial stability are emerging from elevated political and policy In this paper, we aim to identify the link between changes in global liquidity and a variety of market sentiment and financial stability indices for a sample of 149 countries between 2000–2016, controlling for other determinants. The research employs the concept of global liquidity, defined by the Bank for International Settlements BIS 2 Macro-financial stability frameworks and external financial conditions enhancing resilience. 1 The focus is on the challenges from swings in external financial conditions, which have often been a key risk factor for macro-financial stability, in particular for EMEs but also for some AEs. Reflecting these challenges and their KDhlwBJ.