Timebased guidance may reduce the sensitivity of rates to incoming macroeconomic data, suppress volatility, encourage risk-taking and increased leverage, and threaten financial stability. It may also put policymakers in a box when changes in the economy make it optimal to deviate from previously expressed guidance, but the Committee cannot do so without losing credibility.
*  *  *  Distinguished delegates This is the eleventh year that representatives from the academic world and central banks across the world meet to discuss topics that are very relevant in the prevailing macroeconomic environment. On this occasion, the organisers have selected the issues of global imbalances, competitiveness and emerging markets.