Something one should always bear in mind, but which I do not intend to discuss further here, is that decisions we make regarding conditions in Sweden must also be incorporated into a broader, European context. There are also a number of questions, particularly with regard to the interplay between macroprudential policy and monetary policy, that sooner or later may need to be dealt with in practice and it would be wise to have thought them through. Coordination... Some of the research into macroprudential policy – which is in general still in its infancy – tries to analyse the importance of coordinating macroprudential policy and monetary policy. The idea is roughly as follows: Monetary policy and macroprudential policy act through largely the same channels. Both the policy rate and most macroprudential tools affect, for instance, credit growth in the economy and developments in various asset prices. This also means that the two policy areas affect one another’s objectives. Monetary policy affects the credit cycle – which was the whole point of “leaning against the wind”, and macroprudential policy has effects on the business cycle. It is therefore desirable to find the right policy mix – the combination of policy rate and macroprudential tools that give the best overall outcome for the economy. The conditions for finding the right mix are normally improved if the two types of policy are coordinated, rather than determined separately. 14 The importance of coordination is also pointed out in more practical economic policy contexts.
Speech  Embargo 27 April 2018, 10.00 am  Comments on monetary policy and banking regulation 110th Ordinary General Meeting of Shareholders of the Swiss National Bank  Thomas J. Jordan Chairman of the Governing Board Swiss National Bank Berne, 27 April 2018 © Swiss National Bank (speech given in German)  Page 1/8  Mr President of the Bank Council Dear Shareholders Dear Guests It gives me great pleasure to welcome you to our Annual General Meeting. As is customary, the first part of my speech will be devoted to comments on the current economic situation and monetary policy. Ten years after the start of the global financial crisis, we can now look back on a year in which economic momentum has been much more positive – both in Switzerland and worldwide. The question is: has the global economy now finally completed its unusually sluggish recovery process? As I will show, there are indeed grounds for optimism, but it is still too early for this to give way to euphoria. In the second part of my speech, I would like to look at the state of play in banking regulation. A decade on from the global financial crisis, we should not just be asking whether we have recovered from the consequences of this event; we should also take stock of what we have done to improve the ability of our banking system to withstand future crises.