Third, the existing monetary policy framework focuses on medium-term price stability – defined over a horizon of two years. In the run-up to the crisis, this meant that financial imbalances were left to be handled by micro prudential policy. But financial imbalances are procyclical, and also have strong macro-dynamics and implications for the macroeconomy.
Before turning to the more recent work of the CPMI and IOSCO in this area, allow me to recall two important general considerations that should be taken into account when developing macroprudential frameworks for CCPs. First, we should not try to apply blindly to CCPs the macroprudential tools we have developed for the banking sector.