This calls for a macro prudential policy in addition to a micro prudential response – a theme that will be picked up by some of today’s policy panellists – and, in addition, a role for monetary policy. 4. Fourth, it is important to acknowledge that policy makers are part of the environment in which they operate.
We now know that the prevalent behaviour in the years before the crisis embodied an important element of irrationality. Like all members of society, policymakers are partial to the prevalent consensus, and share its key values and behavioural characteristics. 2  BIS Review 154/2009  5.