Writing a book is not an easy task, as Harold admits in the preface. Authors must research, conceptualise, brainstorm, draft and redraft, edit, agonise about the completeness and accuracy of their story, and withstand the judgements of their critics. Harold, you’ll hear soon the critiques of your readers.
It is an important input in a strategy of “leaning against the wind”. Finally, monetary policy follows a so-called “Separation principle”, which distinguishes decisions about the monetary stance aimed at achieving price stability from tools directed at implementing monetary policy decisions through liquidity management. With these principles in mind, let me turn to the monetary policy responses to the crisis.