Three areas of interest not only for policy makers and regulators but also for current and future academic research seem to me particularly important today. The first is about macro-prudential policy and tools. To tame systemic risks in the banking sector, banks’ resilience to shocks is being increased with the introduction of countercyclical and other capital buffers.
I conclude that, notwithstanding the recent rise in the real federal funds rate, neither financial conditions in general nor monetary policy in particular are currently restraining aggregate demand. Third, there has been a significant rebound in productivity growth over 1996 and 1997, compared to the previous two years. That is clear from the data.