See Assessing Sustainability (SM/02/166). Some refinements were introduced a year later (Sustainability Assessment—Review of Application and Methodological Refinements, SM/03/206). In cooperation with the World Bank, a separate DSA framework was developed for low-income countries and endorsed by the two Boards in 2005 (SM/05/109).
This issue was actually underscored in Sustainability Assessment—Review of Application and Methodological Refinements, (SM/03/206), paragraph 20.
The “combined shock” stress test shows the combined effect of joint one-fourth standard deviation shocks for the relevant variables.
For instance, in the existing templates a negative shock to GDP growth is formulated by subtracting two standard deviations from its historical mean. In the new templates, it is formulated by subtracting one-half standard deviation from the baseline GDP growth.