For this reason, too, we will have to rehabilitate the quantities – money, credit, debt – and estimate the effects of changes in them in the longer run. Furthermore, we must introduce into our monetary policy frameworks ways of systematically identifying and reflecting structural changes related to the functioning of the labour market under the influence of demographic change, to globalisation or deglobalisation tendencies, to society's preferences regarding private and public debt, to the response of economic policy to climate risks, and so on. To this end, we also need to begin to view macroeconomics as a social science again, that is, not to be ashamed of the historical term "political economy". I would like to end by thanking all my current or previous colleagues here at the Faculty of Economics, at universities in other countries, in international organisations and at the CNB for carrying on the torch of the Ostrava Monetary School which we started to build here in the early 1990s. I wish you a successful conference. *** I would like to thank Jakub Matj, Adviser to the Bank Board of the Czech National Bank, for valuable comments and suggestions. Any errors or omissions are my responsibility. 5/5  BIS - Central bankers' speeches
•  And we do not know yet how to exit successfully from these policies. Can monetary policy contribute towards financial stability? And there is a further problem. Macroprudential policies may not be equally effective in all countries – which brings us back to the United States. •  As Stanley Fischer put it recently: “The US macroprudential toolkit is not large and not yet battle tested.”  •  There is a significant shadow banking sector in the US that extends credit but is not regulated like banks. •  This will blunt the effectiveness of any macroprudential tools applied to regulated entities. If macroprudential policy is not able to secure financial stability on its own, could monetary policy lend a helping hand? •  As Stan Fischer goes on to say: “The limited macroprudential toolkit in the United States leads me to conclude that there may be times when adjustments in monetary policy should be discussed as a means to curb risks to financial stability.”  6  BIS central bankers’ speeches  The question then arises: under what circumstances should monetary policy consider financial stability? •  One way to look at it could be as follows. •  If the market interest rate is clearly below reasonable estimates of the neutral rate, there could be a case for monetary policy to step in on both price stability and financial stability objectives. Can regulatory policy help contribute towards macroeconomic stability?