The Andrew Crockett Memorial Lecture and panel discussion

The Andrew Crockett Memorial Lecture, delivered by Professor Jeremy C Stein (Moise Y Safra Professor of Economics, Harvard University), on the occasion of the Bank's Annual General Meeting, Basel, 25 June 2023.

BIS speech  | 
25 June 2023

The Andrew Crockett Memorial Lecture

Jeremy C Stein is the Moise Y Safra Professor of Economics at Harvard University and serves on the board of directors of the Harvard Management Company. From May 2012 to May 2014, he was a member of the Board of Governors of the Federal Reserve System. Stein is a fellow of the American Academy of Arts and Sciences, a research associate of the National Bureau of Economic Research, and a member of the Federal Reserve Bank of New York's Financial Advisory Roundtable. In 2009, he served as a senior advisor to the Treasury Secretary and on the staff of the National Economic Council.


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. I draw 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