Today, I will mainly focus on monetary policy responses to a bubble. Then, I will briefly touch upon some issues on supervision and regulation. Importance of risk-taking channel Before the current global financial crisis, the majority view about the monetary policy responses to a bubble can be summarized into two points.
In fact, the volume of world trade has already surpassed its pre-pandemic levels and is now close to its record level. At the same time, however, protectionism and friend-shoring are increasing and supply chains are being shortened. In the world of high geopolitical tensions, strengthening and maintaining the resilience of the financial system has become ever more important.