BIS central bankers’ speeches  3  We’re also making progress toward a better understanding of how monetary policy actions influence risk taking. For example, when a central bank cuts interest rates to cushion the economy from a shock, the hope is that people will borrow more at that lower interest rate and spend more money.
But is there more to the story than appears at first glance? Evidence is emerging that the relationship between income and democracy is nonlinear. Similarly, crises and shocks appear to impact similar institutions in different countries differently. 2/3  BIS - Central bankers' speeches  Indeed, there is a powerful narrative that every crisis is an opportunity for better adjustments.