The immediate response on the part of the central bank to such financial implosions must be to inject large quantities of liquidity - or as Walter Bagehot put it, describing such policies of the Bank of England more than a century ago, in a panic the Bank should lend at very high rates of interest “to all that bring good securities quickly, freely, and readily.”11 This was perhaps an early articulation of a crisis risk management policy for a central bank.
Experience appears to show that policies designed to foster cultural and social inclusion and to attract foreign workers who are highly attached to the labour market can increase the efficiency of job matching for.7 A key issue in the debate about migration is the effect of migrant labour on local employment and wages, even if only in the short run; one of the papers in this workshop argues that much depends on competitive conditions in the labour market.8  6  7  8  See F. Carta, F. D’Amuri and T. M. von Wachter, Workforce Aging, Pension Reforms, and Firm Outcomes, NBER Working paper, 28407, 2021; F. Carta and M. De Philippis, Working Horizon and Labour Supply: the Effect of Raising the Full Retirement Age on Middle-aged Individuals, Bank of Italy working paper, 1314, 2021; N. Bianchi, G. Bovini, J. Li, M. Paradisi and M. Powell, Career Spillovers in Internal Labor Markets, Review of Economic Studies, forthcoming; M. De Philippis, The Dynamics of the Italian Labour Force Participation Rate: Determinants and Implications for the Employment and Unemployment Rate, Bank of Italy Occasional Papers, 396, 2017.