In those days, we made the most of academic wisdom, but we often encountered the situations that were not well captured by the existing economic theory. For example, financial imbalances were built up under benign economic conditions, through sharp credit expansion, outsized leverage, and soaring asset prices.
As these values have been decided upon by all members of the Bank, we should do our utmost to ensure that they do not remain mere empty words, but are fully incorporated into the operation of this organization and the exercise of our duties.