The Role of Monetary Policy It will be remiss of me not to speak about the role of monetary policy in the context of geopolitical spillovers. As a backdrop, it is perhaps useful to summarise the monetary policy actions and stance adopted in 2022-23 so far.
The best evidence that we are willing to live with some degree of moral hazard may be found in the importance of insurance as a social institution. The costs that would be incurred in trying to eliminate moral hazard completely from, say, a casualty insurance policy are simply too high as a practical matter.