2  See Brand et al. (2010), Gürkaynak et al. (2005), Kuttner and Posen (1999), Bibinger et al. (2013). 3  See Praet (2013) for a detailed exposition of this distinction. See also Campbell et al. (2012) for the taxonomy of “Odyssean” vs. “Delphic” forward guidance underlying this distinction.
As such, multilateral, regional and bilateral policy tools to address adverse shocks can make a significant difference in terms of risk management, allowing to better mitigate the effects of a crisis. In this regard, further strengthening the GFSN must remain among the financial authorities’ priorities. After all, the COVID-19 crisis has taught us the materiality of a truly global large-scale shock.