93rd Annual General Meeting
Sunday 25 June 2023, Basel
At its Annual General Meeting, the BIS released its Annual Economic Report and its Annual Report.
Lecture delivered by Professor Jeremy C Stein, Moise Y Safra Professor of Economics, Harvard University
Chair: Agustín Carstens, General Manager, BIS
Monetary policy when the central bank shapes financial market sentiment Read more
Lecture by Jeremy C Stein, Moise Y Safra Professor of Economics, Harvard University
Recent research has found that monetary policy works in part by influencing the risk premiums on both traded financial-market securities and intermediated loans. Research has also shown that, when risk premiums are compressed, there is an increased likelihood of a reversal that damages the credit-supply mechanism and the real economy. Together these effects create an intertemporal trade-off for monetary policy, as stimulating the economy today can sow the seeds of a future downturn that might be difficult to offset. Mr Stein draws out some implications of this trade-off for the conduct of monetary policy.
Based on paper: Monetary Policy When the Central Bank Shapes Financial-Market Sentiment, Journal of Economic Perspectives, winter 2023.
Panel discussion
Chair: Agustín Carstens, General Manager, BIS
Panellists: Christine Lagarde, President, European Central Bank; Amir Yaron, Governor, Bank of Israel; John C Williams, President, Federal Reserve Bank of New York
The session looked at the journey that standard-setting bodies have taken so far to address the risks posed by cryptoassets and DeFi and how they plan to proceed in helping national authorities to achieve their mandates.