This reaction of central banks has clear parallels to the way business leaders confront challenges. To illustrate this, let me briefly outline how features of central banking practices correspond to the four themes that the organisers of this conference have laid out as relevant for addressing challenges in the corporate world. The first theme is strength.
Central banks typically rely on financial markets to transmit their monetary policy intentions to the real economy. During the crisis, dysfunctional segments of financial markets threatened to weaken or completely suppress this process. Central banks addressed these market dislocations in a resolute way, thereby showcasing the strength of the instruments that are at their disposal. Second comes control.