It also involves the operation of financial safety net in the form of deposit insurance. Fourth, Liquidity: The response to a crisis may necessitate judicious use of the emergency liquidity assistance facilities in order to avoid disruptions from disorderly failures and to contain contagious strain. Only central banks can inject liquidity.
Nonetheless, this is an appropriate juncture at which to try to bring all this together. So this morning, I intend to elaborate a little about the sorts of issues that have been important for the conduct of policy in the past year and those that look like they will be relevant in the period ahead.