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Lane: Monetary Policy and Financial Stability—Looking for the Right Tools
Thank you for the opportunity to speak here today. My remarks will focus on the following question: Should a central bank’s decisions on monetary policy account for the stability of the financial system and, if so, how? We at the Bank of Canada are grappling with this question, and it is being debated by economists and policy-makers around the world. This topic is not new, but finding the right answer now seems more urgent than ever. The global financial crisis that began eight years ago has taken an enormous toll, both economic and, more important, human. Around the world, including in Canada, the crisis ushered ... (full story)