Lessons from the Global Financial Crisis Stanley Fischer, Governor, Bank of Israel Yegor Gaidar Lecture in Economic Policy...
<ul><li>Lesson 1: </li></ul><ul><li>Reaching the zero interest lower bound is not the end of expansionary monetary policy....
<ul><li>Lesson 2: </li></ul><ul><li>The critical importance of having a strong and robust financial system. </li></ul><ul>...
<ul><li>Lesson 3: </li></ul><ul><li>The need for macroprudential supervision. </li></ul><ul><ul><li>Regulation of the fina...
<ul><li>Lesson 4: </li></ul><ul><li>Dealing with bubbles. </li></ul><ul><ul><li>The mopping-up approach. </li></ul></ul><u...
<ul><li>Lesson 5:   </li></ul><ul><li>The lender of last resort, and too big to fail. </li></ul><ul><ul><li>Liquidity and ...
<ul><li>Lesson 6: </li></ul><ul><li>The eternal verities – lessons from the IMF. </li></ul><ul><ul><li>Maintain fiscal dis...
<ul><li>Lesson 7: </li></ul><ul><li>Target inflation, flexibly. </li></ul><ul><ul><li>The objectives of a modern central b...
<ul><li>Lesson 8: </li></ul><ul><li>Never Say Never </li></ul>
Thank you
Upcoming SlideShare
Loading in...5
×

Lessons from the Global Financial Crisis by Stanley Fischer, Governor, Bank of Israel

1,136
-1

Published on

July 8, 2011 The second Gaidar Memorial Lecture in Economic Policy supported by the Human Capital Foundation: "Lessons from the Global Financial Crisis",
Lecturer: Stanley Fischer, Governor, Bank of Israel

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,136
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
23
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Lessons from the Global Financial Crisis by Stanley Fischer, Governor, Bank of Israel

  1. 1. Lessons from the Global Financial Crisis Stanley Fischer, Governor, Bank of Israel Yegor Gaidar Lecture in Economic Policy New Economic School, Moscow July 8, 2011
  2. 2. <ul><li>Lesson 1: </li></ul><ul><li>Reaching the zero interest lower bound is not the end of expansionary monetary policy. </li></ul><ul><ul><li>Quantitative easing </li></ul></ul><ul><ul><li>Credit easing (market maker of last resort) </li></ul></ul><ul><ul><li>How much to ease? (Taylor rule) </li></ul></ul><ul><ul><li>In which assets to intervene, manage monetary policy? (Tobin, debt management) </li></ul></ul>
  3. 3. <ul><li>Lesson 2: </li></ul><ul><li>The critical importance of having a strong and robust financial system. </li></ul><ul><ul><li>Recessions that are accompanied by a financial crisis are far worse that those that are not (Reinhart and Rogoff) </li></ul></ul><ul><ul><li>What needs to be done to maintain a robust financial system? </li></ul></ul><ul><ul><li>What will be the effects of recent recommendations from the Basel Committee and FSB? </li></ul></ul>
  4. 4. <ul><li>Lesson 3: </li></ul><ul><li>The need for macroprudential supervision. </li></ul><ul><ul><li>Regulation of the financial system at a very broad level, emphasizing systemic interactions. </li></ul></ul><ul><ul><li>What are macroprudential policy tools? </li></ul></ul><ul><ul><li>Dealing with a potential housing bubble. </li></ul></ul><ul><ul><li>What are the optimal institutional arrangements for macroprudential supervision? </li></ul></ul>
  5. 5. <ul><li>Lesson 4: </li></ul><ul><li>Dealing with bubbles. </li></ul><ul><ul><li>The mopping-up approach. </li></ul></ul><ul><ul><li>Should the central bank react to asset prices? </li></ul></ul><ul><ul><li>When, if ever, is the mopping-up approach optimal? </li></ul></ul>
  6. 6. <ul><li>Lesson 5: </li></ul><ul><li>The lender of last resort, and too big to fail. </li></ul><ul><ul><li>Liquidity and solvency </li></ul></ul><ul><ul><li>Fiscal consequences </li></ul></ul><ul><ul><li>Too big (interconnected) to fail and resolution mechanisms. </li></ul></ul><ul><ul><li>SIFIs </li></ul></ul><ul><ul><li>Moral hazard </li></ul></ul><ul><ul><li>Do we have a solution to too big to fail? Will we have one? </li></ul></ul>
  7. 7. <ul><li>Lesson 6: </li></ul><ul><li>The eternal verities – lessons from the IMF. </li></ul><ul><ul><li>Maintain fiscal discipline and efficiency. </li></ul></ul><ul><ul><li>Maintain monetary and financial stability. </li></ul></ul><ul><ul><li>Follow growth-promoting structural policies. </li></ul></ul><ul><ul><li>Have regard for the economic welfare of all segments of society. </li></ul></ul>
  8. 8. <ul><li>Lesson 7: </li></ul><ul><li>Target inflation, flexibly. </li></ul><ul><ul><li>The objectives of a modern central bank </li></ul></ul><ul><ul><ul><ul><li>Price stability </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Support for other goals of government policy, subject to… </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Support for financial stability </li></ul></ul></ul></ul><ul><ul><ul><ul><li>What does inflation targeting achieve? </li></ul></ul></ul></ul>
  9. 9. <ul><li>Lesson 8: </li></ul><ul><li>Never Say Never </li></ul>
  10. 10. Thank you
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×