BIS central bankers’ speeches  7  Institutional response Institutional language is now coloured by words such as austerity, crisis, collapse, disaster response, instability, volatility, vulnerability and, above all, uncertainty. The GFC exposed the weaknesses of risk management to the World and especially the inadequacy of institutions that allowed their risk management practices to be subverted by the drive for short term profitability.
The euro area will be able to successfully meet the challenges ahead. The Treaty has laid down an appropriate framework for the allocation of tasks among policy areas. Monetary policy can best support economic growth over the medium term if it is strictly focused on its primary objective.