CCAR and CLAR are applied to bank holding companies, firms that now include many of the broker-dealers and other nonbank intermediaries involved in the market-based system of intermediation. Both of these forwardlooking assessments attempt to gauge the vulnerability to a crisis by examining the capital and liquidity resources the largest bank holding companies have to withstand the stresses that accompany a severe economic downturn. 8  BIS central bankers’ speeches  References Adrian, Tobias, and Hyun Song Shin. 2008. “Liquidity, Monetary Policy, and Financial Cycles.” Federal Reserve Bank of New York Current Issues in Economics and Finance 14, no. 1 (January). Adrian, Tobias, and Hyun Song Shin. 2010. “Liquidity and Leverage.” Journal of Financial Intermediation 19, no. 3: 418–437. Adrian, Tobias, and Hyun Song Shin. 2014. “Procyclical Leverage and Value-at-Risk.” Review of Financial Studies 27, no. 2 (February): 373–403. Adrian, Tobias, and Nina Boyarchenko. 2012. “Intermediary Leverage Cycles and Financial Stability.” Federal Reserve Bank of New York Staff Reports, no. 567, August. Adrian, Tobias, and Nina Boyarchenko. 2013. “Liquidity Policies and Systemic Risk.” Federal Reserve Bank of New York Staff Reports, no.661 (December). Adrian, Tobias, and Nina Boyarchenko. 2014. “Liquidity Policies and Systemic Risk.” Federal Reserve Bank of New York Liberty Street Economics blog, April. Adrian, Tobias, Nina Boyarchenko, and Hyun Song Shin. 2015. “The Cyclicality of Leverage.” Federal Reserve Bank of New York Staff Reports, no.743 (October). Adrian, Tobias, Emmanuel Moench, and Hyun Song Shin. 2010. “Macro Risk Premium and Intermediary Balance Sheet Quantities.” International Monetary Fund Economic Review 58 (September): 179–207.
Increasingly we are asking ourselves whether we are communicating messages in accessible language. xv  Whether we’re using the right media channels to reach the widest possible audience. And most fundamentally, whether people from different backgrounds deduce the same things from our policy messages. Diversity can help. The more homogenous an organisation the more likely it will fall foul of the ‘curse of knowledge.’ This cognitive bias occurs when people assume that their audience has the same background information and base level of understanding as themselves. xvi  It’s assuming that everyone has the same  narrow view of humanity as the representative agent at the heart of a DSGE model. 4  All speeches are available online at www.bankofengland.co.uk/speeches  4  To communicate to both the City and the country, the salon and the suburb, we need to create content that engages different audiences. The problem is that they don’t teach you this in Grad school (or at least the ones where we traditionally recruited). We need alternative perspectives to craft our messages so that they make sense and resonate with more people. The more people can recognise themselves in us, the more we can stand in their shoes and speak their language, the more likely the Bank is to be trusted. xvii  The how The Bank’s approach to increase diversity and foster inclusion is three-fold:   through inclusive recruitment,    developing an inclusive culture, and    creating inclusive communications.