To this end, policy-makers will be engaged in the task of designing coherent policy frameworks for some years to come. References Agénor, P.-R. (2003), “Benefits and Costs of International Financial Integration: Theory and Facts” in The World Economy, Vol. 26(8), pp. 1089–1118. Basel Committee on Banking Supervision (2010a), “An assessment of the long-term economic impact of stronger capital and liquidity requirements”.
Second, we need to keep in mind the well-established fact that the full effects of monetary policy are felt only after long lags. This means that policymakers cannot wait until they have achieved their objectives to begin adjusting policy.