Moreover, the Bank’s assessments of the risks in the financial system are useful inputs to the decisionmaking of monetary policy in the “Two Perspectives Framework” (discussed later). The Bank of Japan is making efforts also in terms of exploiting wide-ranging data, macro stress-testing and establishing econometric models incorporating the financial sector, which is in line with the efforts of other central banks.
Kidding aside, I do consider being the namesake for this award a great honor, and just to make sure I don’t get too much of a swelled head, by tradition the conference organizers purposefully misspell my name. My subject today is the outlook for the U.S. economy and the Federal Reserve’s ongoing campaign to bring down inflation and achieve our 2 percent objective.