DISCLAIMER: Staff Discussion Notes (SDNs) showcase policy-related analysis and research being developed by IMF staff members and are published to elicit comments and to encourage debate. The views expressed in Staff Discussion Notes are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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Complaints of stress are common in modern life. Psychological stress is a major cause of lifestyle-related issues, contributing to poor quality of life. Chronic stress impedes brain function, causing impairment of many executive functions, including working memory, decision making and attentional control. The current study sought to describe newly developed stress mitigation techniques, and their influence on autonomic and endocrine functions. The literature search revealed that the most frequently studied technique for stress mitigation was biofeedback (BFB). However, evidence suggests that neurofeedback (NFB) and noninvasive brain stimulation (NIBS) could potentially provide appropriate approaches. We found that recent studies of BFB methods have typically used measures of heart rate variability, respiration and skin conductance. In contrast, studies of NFB methods have typically utilized neurocomputation techniques employing electroencephalography, functional magnetic resonance imaging and near infrared spectroscopy. NIBS studies have typically utilized transcranial direct current stimulation methods. Mitigation of stress is a challenging but important research target for improving quality of life.

Addressing the buildup of nonperforming loans (NPLs) in Italy since the global financial crisis will remain a challenge for some time and be important for supporting a sustained, robust economic recovery. The buildup reflects both the prolonged recession as well as structural factors that have held back NPL write-offs by banks. The paper discusses the impediments to NPL resolution in Italy and a strategy for fostering a market for restructuring distressed assets that could support corporate and financial restructuring.

Neurofeedback is a biofeedback training of electroencephalogram (EEG) activity through operant conditioning where an individual is trained to increase or inhibit the brain activity in specific frequency ranges. Studies have demonstrated its efficacy to reduce inattention, impulsivity and hyperactivity in children with attention deficit hyperactivity disorder (ADHD), with the mostly used training protocols on modulation of θ/β ratio. Given the comorbidity and common cognitive deficits between ADHD and developmental dyslexia, this study aimed to explore the effects of θ/β neurofeedback on cognitive deficits in Chinese dyslexic children. In the present case study, a multiple-baseline design was adopted, and the effects of training were investigated from both neurophysiological and neuropsychological levels. Four dyslexic children completed 10 weekly sessions of θ suppression and β enhancement neurofeedback training in the sensorimotor cortex. Pre- and post-assessments consisted of neurophysiological measures, neuropsychological assessments, and parental reports. Neurofeedback training reduced θ/β ratios in all participants. All participants also improved in measures of auditory vigilance and phonological awareness.