Hitting the limits of “outside the box” thinking? Monetary policy in the crisis and beyond. Speech by Jaime Caruana, General Manager of the Bank for International Settlements, to OMFIF (Golden Series Lecture), London, 16 May 2013.
“Central banks have had to “think outside the box” to address unprecedented financial instability and to provide monetary stimulus in trying times. Monetary accommodation has been critical to stabilise the financial system and the economy. But questions remain about the efficacy of such policies as long as balance sheets and structural headwinds are not more fully addressed. Monetary accommodation can only be as helpful as the balance sheet, fiscal and structural policies that accompany it. Looking ahead, central banks will continue to face daunting challenges as they navigate in uncharted waters, including how best to integrate new perspectives on the financial cycle and global spillovers into their monetary policy frameworks.”
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