Policy Makers Skeptical on Preventing Financial Crisis
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“There may be times when adjustments to monetary policy should be discussed as a means to curb risks to financial stability,” said Stanley Fischer, the Fed vice chairman.CreditJim Watson/Agence France-Presse — Getty Images
BOSTON — The 2008 financial crisis convinced most people in the world of central banking that it would be a good idea to try to prevent that kind of thing from happening again.
But policy makers have made little progress in figuring out how they might actually do so, a troubling reality highlighted at a conference that ended over the weekend at the Federal Reserve Bank of Boston.
The Fed has publicly committed itself to a strategy of so-called macroprudential regulation, meaning it is now focused on maintaining the stability of the financial system as well as the health of individual firms. But senior Fed officials at the Boston conference described that as more of a goal than an achievement…
Policy Makers Skeptical on Preventing Financial Crisis
