Our ability to model the channels by which disruptions in credit and finance affect the real economy and the ways these effects feed back into the banking and financial systems is getting more sophisticated. 10 But our understanding of the key channels, their quantitative importance, and the effects of our policies remain incomplete at best.
6  BIS central bankers’ speeches  BIS central bankers’ speeches  7  8  BIS central bankers’ speeches  BIS central bankers’ speeches  9  10  BIS central bankers’ speeches  BIS central bankers’ speeches  11  12  BIS central bankers’ speeches  References Barro, Robert J., “Rare Disasters, Asset Prices, and Welfare Costs,” American Economic Review, Vol.