Money creation, Goethe, Faust and alchemy  Let me remind you briefly of the “money creation” scene in Act One of the Second Part of Faust. Mephistopheles, disguised as a fool, talks to the Emperor, who is in severe financial distress, and says “In this world, what isn’t lacking, somewhere, though?
I believe that new thinking on such dimensions is essential to our efforts to build a stronger institutional basis for crisis prevention. Many specific questions arise in this regard. Should the mandate of monetary policy be broadened to include financial stability – particularly in the context of inflation targeting? How should monetary policy be coordinated with macro-prudential policies?