I would now like to turn to this issue. The government's balance sheet Over recent decades, the conventional wisdom has been that the government's balance sheet has a limited role in managing economic fluctuations, with the main focus instead being on structural and intergenerational issues. The global financial crisis, and now the pandemic, have caused some rethinking here.
Notwithstanding that our mandate is different and implies that some risks and scenarios are an unavoidable consequence of the policy stance, central banks should aim for the highest standards of both governance and risk management. And central banks are indeed increasingly performing more forward-looking risk assessments in response to the increased risk profile, since the financial crisis.