Governor, we thank you for making the time to be here at this auspicious occasion and trust that you are having a pleasant stay so far. Ladies and Gentlemen: Today’s event is a monumental one in that it marks the establishment of formal supervisory relations between the Central Bank of Kenya and the Bank of Mauritius.
In crisis conditions many standard results no longer apply, established asset pricing relationships break down, and the transmission mechanism of monetary policy becomes problematic. Let me mention a few elements that in my view have become particularly important, and relate them to economic thinking.