Conclusion Impressive progress has been made in understanding transmission mechanisms of macroprudential policy instruments but this is the beginning of a long journey, as we prepare the analytical toolkit for this new policy area. I am encouraged by the wide range of empirical and theoretical modelling approaches of financial instability which are being presented here at the MaRs conference.
For the decisions we have to take in the near term, we will have to rely more on incompletely tested theories and sometimes precarious econometric evidence. This means that we have to accept uncertainty and cautious experimentation when we decide what is necessary to stabilise the financial system.