Coordination was also one of the questions discussed in the report by a working group at the Bank for International Settlements, where I was chair, see the Bank for International Settlements (2011). 15  See H M Treasury (2013), which points out, for instance, that "The Government intends that the frameworks for monetary policy and macro-prudential policy, operated by the MPC and FPC of the Bank of England respectively, should be coordinated” (p. 5), and “In order to foster coordination between monetary and macroprudential policy, there is overlap between the membership of the Monetary Policy Committee and the Financial Policy Committee” (p. 10). BIS central bankers’ speeches  9  be what one can call a holistic, or comprehensive, view when formulating both types of policy. If both the credit cycle and the business cycle are to be stabilised in a good way, I do not believe that they can be too far from the policy mix implied by full coordination, at least not over a long period of time. The two types of policy could then counteract or reinforce one another in ways that would be harmful to the economy. It is probably also the case that this interplay is particularly important in sensitive situations, such as preventing a credit boom going too far and ensuring that the credit cycle has a slow, soft downturn instead of a rapid, dramatic one.
Stefan Ingves: Central bank policies – the way forward after the crisis Speech by Mr Stefan Ingves, Governor of the Sveriges Riksbank and Chairman of the Basel Committee on Banking Supervision, at the Royal Bank of Scotland, Stockholm, 4 October 2013. *  *  *  How should the Riksbank and other central banks act to contribute to the best possible development of the economy? This is a question that one might need to contemplate from time to time. Because at the end of the day, there is probably some truth in the old joke that it is not a problem if the questions in the Economics exam are the same year after year – the answers will change anyway. The international financial and debt crisis that started around five years ago, and which still afflicts many countries, makes it particularly important to consider whether the answer to the question has changed – whether the central banks should conduct their operations differently from before the crisis, and if so, how. This issue is currently being discussed internationally, both in research and in policy. We do not now know exactly where this discussion will lead, although it is possible to distinguish some main conclusions. Prior to the crisis – most of the pieces of the puzzle appeared to be in place Before the crisis, everything seemed quite simple. The global economy had experienced an unusually long period of good growth, relatively minor cyclical fluctuations, and low and stable inflation.