BIS’s Borio: leaning against the wind must be systematic
Central banks could achieve significant gains from using their monetary policy to control the financial cycle - "leaning against the wind" - but they need to do so systematically, the Bank for International Settlements' (BIS) head, Claudio Borio, said today (September 14).
Speaking at the National Bank of Austria's 200th anniversary conference, Borio cited two recent studies by the BIS. The first modelled financial booms and busts to show there are significant benefits to leaning against the wind
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