Apparently, Chairman Meyer’s reply was to enquire what demand deposits were, but, even after listening to Fisher’s explanation, failed to show much interest. Some of the members of the audience may be thinking that the choice of an anecdote reminding us that central bankers ignore monetary developments at their own risk is not too surprising in this house.
Learning the lessons of the global financial crisis, governments and central banks have launched an unprecedented monetary and fiscal stimulus to support the real economy and avoid a credit crunch. 2. A globally symmetric crisis calls for a globally coordinated policy response. It is a symmetric crisis in a global scale, affecting both advanced economies and emerging and developing countries.