Archive for February 13th, 2011

Central Bank Lessons from the Global Crisis

February 13, 2011

This is the title of a new speech by Stanley Fisher, Governor Bank of Israel. He was in India to deliver the 3rd P. R. Brahmananda Memorial Lecture organised by RBI.

RBI Governor Dr. D. Subbarao, gave a welcoming address. Here is a snapshot of the lecture.

The lessons are:

  • Lesson 1: Reaching Zero Interest Lower Bound is Not the End of Expansionary Monetary Policy
  • Lesson 2: Critical Importance of having a Strong and Robust Financial System
  • Lesson 3: Need for Macroprudential Supervision
  • Lesson 4: Dealing with Bubbles
  • Lesson 5: Lender of the Last Resort, and Too Big to Fail
  • Lesson 6: Importance of Exchange Rate for a Small Open Economy
  • Lesson 7: Eternal Verities – Lessons from the IMF
  • Lesson 8: Target Inflation, Flexibly
  • Lesson 9: “Never say Never”

Much of the lessons have been suggested by many policymakers/econs. But a useful recap.

 

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