We must look further ahead in assessing the appropriate stance of monetary policy. Of course, there is a great deal of uncertainty about the future and that too has implications for how we should approach policy. I will begin with a brief overview of the economy as one policymaker sees it as we near the end of 2014.
The growing use of derivatives adds another layer of complexity. The approach for assessing global imbalances needs to change accordingly. 4. Preparing for new types of crises  Mankind has continuously searched for “monetary anchors” or “monetary benchmarks”. This endeavor has been a repetition of initial success followed by failure or outdatedness as a result of rapid changes in the economic and financial system.