Lars Rohde: Macroprudential policy - merits, limitations, current challenges and the way forward

Speech by Mr Lars Rohde, Governor of the National Bank of Denmark, at the Macroprudential Policy Conference, Copenhagen, 19 November 2018.

Central bank speech  | 
19 November 2018

Dear guests,

I am very pleased to welcome you to this macroprudential policy conference in Copenhagen.

The conference is a result of our excellent cooperation with the European Department at the IMF and the Center for Financial Frictions at Copenhagen Business School.

The ambition for today is to have an open debate about the merits and limitations of macropru-dential policy. And to discuss current challenges and the way forward.

To me, the essence of where we stand today with macroprudential policy is best captured in a quote by the Danish philosopher Søren Kierkegaard: "Life can only be understood backwards; but it must be lived forwards."