Challenges involved in implementation  We now understand the importance of examining the risk of accumulating financial imbalances and evaluating where and how much risks lie in the conduct of monetary policy, at least conceptually. For actual implementation, however, difficult challenges remain. One  2  BIS central bankers’ speeches  such challenge is how to detect the accumulation of financial imbalances.
To this end, efforts have been made globally, including by the Bank of Japan, to develop analytical tools. Another challenge is how to respond to the accumulation of financial imbalances when they are detected successfully.