1  Systemic Risk Assessment Model for Macroprudential Policy  BIS central bankers’ speeches  1  Limits of macroeconomic policy framework operation before the crisis As the Great Recession triggered by the financial crisis has been persisting for a long time, each nation’s policy responses are more critical than ever before to prevent recurrence of a financial crisis.
Over the past year, global financial conditions tightened in response to monetary policy actions aimed at reducing inflation. The forceful response by central banks, including here in Canada, is proving successful at bringing inflation down. At the same time, we have seen periods of volatility and pockets of stress, particularly in the US banking sector.