Five years in BIS Tower and figuring lessons from the global crisis

Mr Stephen G Cecchetti of BIS reflects on his 5 years in BIS and lessons going forward.

He says there are two lessons for econ researchers:

  1. Quantities matter more than we thought.
  2. Moral hazard is worse than we thought. 

For policymakers, there are 3 insights:

1) Short-term interest rates are not enough.
2) High debt levels are a drag on growth.
3) Market discipline is not enough.

Nice bit..

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