Speech by Mr Klaas Knot, President of the Netherlands Bank, at the Peterson Institute for International Economics, Washington DC, 24 September 2018.
In his speech at the Peterson Institute in Washington, Klaas Knot states that a sound financial system makes life much easier for central bankers. But the reverse is also true: a weak financial system can cost monetary policymakers many sleepless nights. And secondly, he points out the need for further improvements in the regulatory framework in the coming years.
1. Introduction
Ten years ago, the global financial system was on the brink of collapse. Within just a couple of weeks, well-known and systemically important financial institutions either failed or teetered on the abyss.
Activity in several key financial markets ground to a complete halt. Soon after, the global economy would enter a very deep recession.