When it comes to the question of which system today is the most effective at generating rising standards of living, the historical debate is over. The answer is free-market capitalism … Today there is only free-market vanilla and North Korea.”.
Second, macroprudential analysis faces an imminent challenge in improving our understanding of the potential risks to financial stability involved in the current low interest rates environment and the use of unconventional monetary policy measures. For example, there are again potential risks related to “searching for yield” and the related migration of banking-like activities to the less regulated shadow banking sector.