Be that as it may, these regulatory measures obviate the need of monetary policy tightening which is a blunt tool indiscriminately affecting all sectors of the financial markets and the real economy, although, significantly, I am separately setting out in this Speech how monetary policy tool can also be deployed alongside as a complementary companion tool to credibly and effectively address the build up of systemic financial risks.
BIS central bankers’ speeches  1  In Section 2, I first examine the process of balance sheet adjustment after the bursting of a bubble and when the population is ageing, juxtaposing Japan in the 1990s and the United States in the 2000s. Then, in Section 3, I summarize the consequences of severe, prolonged balance sheet adjustment, as seen in Japan in the 2000s.