Over the past couple of years, Bank staff have developed a new framework to help us objectively evaluate this trade-off, called a growth-at-risk model. It combines the risks to economic growth and inflation coming from both the macroeconomy and financial vulnerabilities in any given setting.
Here at Central Bank we do academic research to deepen our understanding of economic processes, but it is always with a view to coming up with better policies and prescriptions, whether it is with respect to taxation, fiscal policy, tourism development strategy, import substitution or the many other burning issues that we must address from time to time. 2  BIS central bankers’ speeches