But we should be wary of distorted arguments based on partial calculations and a selective approach to the various pros and cons. Rather than looking at the status quo and asking whether there has been toomuch or too little regulation and supervision thus far, we should recognise that we have a common interest in achieving better regulation.
Another question concerns the Fed’s existing toolkit for monetary policy. Currently, our available policy tools include setting interest rates, purchasing longer-term assets, and forward guidance about the expected future path of policy. Are there other tools we should consider to help us reach and sustain our objectives more effectively?