In the Dodd-Frank Wall Street Reform and Consumer Protection Act, Congress required the Board of Governors to consult with the Secretary of the Treasury on regulations to implement its emergency powers.20 It also required that the Board of Governors obtain the approval of the Secretary of the Treasury before extending emergency credit.21 To some extent, the Dodd-Frank Act codified reality. The Board of Governors and the Department of the Treasury worked closely throughout the Financial Crisis of 2008. But Congress formalized a degree of cooperation that can make it hard to draw a theoretical line between monetary and fiscal authority—or between an independent agency and a political department. I should add that this working relationship between our country's monetary and fiscal authorities deepened following the Coronavirus Aid, Recovery and Economic Stimulus Act—known as the "CARES Act." That statute appropriated roughly $ trillion in economic relief. Congress sent about a quarter of that money to the Treasury for investments in Federal Reserve programs and facilities. I look forward, in the fullness of time, to more theoretical discussions about the proper role of a central bank in administering emergency economic relief. Some of this dialogue has already begun.22 Questions that catch my interest include: What should be the guiding principles and constraints on the design and establishment of 13(3) facilities?
Christian Noyer: International financial stability Speech by Mr Christian Noyer, Governor of the Bank of France and Chairman of the Board of Directors of the Bank for International Settlements, at the Lloyd’s City Dinner, London, 29 September 2010. *  *  *  Although the financial crisis originated in one country, it quickly became apparent that it was truly global in nature, both in terms of its mechanisms and its consequences. It brought home a simple message: capital markets are closely interlinked around the world and, thus, domestic and international financial stability cannot be dissociated. Today, I would like to reflect upon international financial stability: what it means, whether or not it should be pursued as a major policy objective; and finally, what actions should be taken and which instruments should be employed. The views expressed are my own and do not represent an official position. However, as you know, next year France will hold the Presidency of the G20 and, bearing this in mind, I will try and offer my own thoughts. International financial stability: what does it mean? Over the last decades increased financial integration has led to greater reallocation of savings across countries. The expansion of gross and net capital flows has been spectacular. As a result current account imbalances have increased both in amplitude and durability. In fact, they have become a permanent feature of our economic environment. Many analysts would argue that these imbalances are the ultimate cause of the crisis. I would not go that far.