There is of course much we still have to learn about the design and implementation of such instruments; indeed, we are still only beginning to discover the mechanisms through which macroprudential policy works in the banking sector.
Still, I am convinced that these additional instruments are essential – and starting work on them is urgent – if we are to have a holistic view on systemic risk and financial stability. Conclusion Let me conclude. What I have argued today is that we are entering into an environment where monetary policy cannot be responsible for managing the financial cycle.