3  See Williamson, J., “Comment”, in Bergsten, F. (ed), International Adjustment and Financing: The Lessons of 1985–1991, Institute for International Economics, 1991, p. 243. BIS central bankers’ speeches  1  prudential policies. I will conclude with a few words about what else is needed to complete the repairing of our monetary union. 1.
Yet, while shifts in risk premia can explain the bulk of recent developments in long-term inflation expectations, they can explain much less of the recent fall in short and medium-term expectations, which you can see on the right-hand side of this slide.