In any case, I believe that the financial globalisation and the way it affects the conditions for monetary policy, including coordination with macroprudential policy, is a question that will continue to be discussed intensively in coming years. As an important problem is that exaggerated credit growth can arise in the countries to which capital flows, financial stability can hopefully be guaranteed by the frameworks for macroprudential policy that are now being built up.32 We will see how well these frameworks can resist the global forces in the “learning by doing” process we are facing in the macroprudential policy area. A more complicated world after the crisis Let me try to summarise. The fact that I have chosen cooperation as something of a theme is because, as I said initially, our world in the wake of the financial crisis appears more complicated than it was before – or at least more complicated than we thought it was. I think it has become more evident that monetary policy in individual countries is dependent on both what happens in other policy areas and on monetary policy in other countries. Of course, there has always been a need to get different policy areas to interact and support one another, and nor is it anything new that there are links between the monetary policies conducted in different countries. But my feeling is nevertheless that the financial crisis has in a way brought these relationships to a head.
Stefan Ingves: Monetary policy and financial stability in a globalised world Speech by Mr Stefan Ingves, Governor of the Sveriges Riksbank and Chairman of the Basel Committee on Banking Supervision, at the Stockholm School of Economics, organised by the Swedish Economic Association, Stockholm, 28 May 2014. *  *  *  Thank you for inviting me. This meeting at the Swedish Economics Association is one of relatively few occasions during the year when I have the opportunity to discuss rather more academic questions that I personally find interesting, but which there may not always be time to consider. At present, however, I am struggling in my day-to-day work with a number of issues where better research support is needed, so today I would like to raise both very concrete issues that are currently on the economic policy agenda, and more theoretical questions about the shaping of the policy. There is an overall theme in what I intend to say today, and that is “cooperation”. I will talk about cooperation between different authorities and policy areas in Sweden as well as cooperation at an international level. One reason why I have chosen to put a certain focus on cooperation is that I perceive that it has become increasingly difficult, or at least more complicated, to conduct a completely independent policy – partly because of the boundaries between the different policy areas having become less clear, and partly because of individual countries being affected perhaps more than ever by international events.