The prospective creation of a European Systemic Risk Board will partly fill this lacuna. For the reasons I have discussed, financial supervision and regulation clearly cannot be conducted without reference to the monetary policy stance. But, both in finalising the institutional framework and in the conduct of these policies in the future, the principles I have articulated must be respected. We need to ensure that macro-prudential policy is formulated both independently and transparently, guaranteeing a rich flow of information among the relevant authorities, including monetary policy-makers, while at the same time avoiding any blurring of responsibilities, objectives and accountability. Concluding remarks In conclusion, what are the main lessons from recent experience that we should seek to incorporate in any revision to the framework for monetary policy-making? First and foremost, monetary policy should have remained more closely focused on the maintenance of price stability over the medium term. This implies that this objective must be defined clearly and pursued symmetrically. Monetary policy should not be burdened with additional objectives, which it is ill-equipped to pursue. The institutional independence of the central bank is essential to building the credibility required to pursue price stability in a consistent and coherent manner. Dual mandates for monetary policy place this independence at risk. Independence accords central banks the necessary flexibility to deal with a rapidly changing world without putting their credibility at risk.
It will be interesting to see how this story plays out in coming years. Thank you very much! 10  I have discussed the potential implications of the foreign currency surplus for the international monetary system in: “The implications of cross-border banking and foreign currency swap lines for the international monetary system”, in O. Blanchard, D. Romer, M. Spence and J. Stiglitz (eds), In the Wake of the Crisis, MIT Press, 2012. 11  See Flemming and Klagges (2010), op. cit. BIS central bankers’ speeches  5