As we look back and move forward, we would all be advised to remember that pride goes before the fall. Risks are usually the greatest when they appear the least; and financial market participants the most vulnerable when they think they know all the answers. In a dynamic financial system, all participants need to focus continually on identifying vulnerabilities and improving resilience.
This is why policy-makers need to consider the debt consequences of the mix of fiscal and monetary policy. 2/5  BIS central bankers' speeches  The burden of debt Ultimately, what matters most is the burden of servicing debt relative to income. In other words, the lower the interest rate, the more debt a given household can afford to carry.