At the same time, many core policy areas, which may have an impact on ﬁnancial stability, remain under national responsibility. This includes ﬁscal policy but also other ﬁnancial market policies which affect balance sheet risks and risk-taking incentives. In this environment, effective macroprudential supervision is particularly important to prevent the build-up of ﬁnancial instabilities. This paper has made three key points.
Academic research provides insights into these questions and possible answers, ways to analyze the data, and the foundations for testing theories with economic models. 1/2  BIS - Central bankers' speeches  The papers presented here today and tomorrow are ideal examples of the kind of work that can help policymakers do their jobs better, and can facilitate sharing knowledge around the world.