Luis M Linde: Monetary policy challenges following the financial crisis

Speech by Mr Luis M Linde, Governor of the Bank of Spain, at the 2017 CUNEF (Colegio Universitario de Estudios Financieros = university affiliated to Universidad Complutense de Madrid) graduation ceremony, Madrid, 16 June 2017.

It is an honour to be here with you today, to celebrate the CUNEF University 2017 graduation ceremony for graduates and postgraduates.

Allow me to congratulate all those who are graduating today, and to express my gratitude for the invitation to preside over this ceremony, which it has been a great pleasure to accept.

Since its foundation more than 40 years ago, CUNEF University has played a very important role in the education of banking and finance professionals in Spain. CUNEF graduates occupy important positions not only in the private sector but also in the public sector, including in the institution that I represent. And I am sure that the students graduating today will maintain the tradition of professional excellence built by this university.

I would like to focus today on what is, without a doubt, the key function of central banks: monetary policy. I will start with a brief historical outline of how the functions of central banks have changed from when they were first established up until the present day, and I will then describe the current framework for monetary policy implementation, concluding with some reflections on the main challenges we face following the economic and financial crisis that broke ten years ago this year.