Opening remarks by Mr William R White, Economic Adviser and Head of Monetary and Economic Department of the BIS, at the BIS Fifth Annual Research Conference on “Financial Globalisation”, Brunnen 19 June 2006.
Event or Meeting: BIS Fifth Annual Research Conference on “Financial Globalisation” Date: 19 June 2006 File: 19062006_Financial Globalisation.pdf
Contribution to the “Festschrift Die Schweizerische Nationalbank 1907 2007
(commemorative publication ” The Swiss National Bank 1907-2007)
No one in the industrial countries should now question the substantial economic benefits associated with reducing inflation from earlier, high levels. At the same time, history also teaches that the stability of consumer prices might not be sufficient to ensure macroeconomic stability. Past experience is replete with examples of major economic and financial crises that were not preceded by inflationary pressures. Conversely, history shows that many periods of deflation, based on rising productivity, were simultaneously characterised by rapid growth. Recent structural changes in the global economy imply that this history might have more contemporaneous relevance than is commonly thought. If so, the implication is that policies directed to the pursuit of price stability might have to be applied more flexibly and with a longer-run focus than has recently been the case.
Publication: Bank For International Settlements Date: 1 April 2006 work205.Is Price Stability Enough.pdf
Slides prepared for the Chatham House Conference on Global Financial Imbalances London, 23-24 January 2006
Event or Meeting: Chatham House Conference on Global Financial Imbalances, London Date: 23 January 2006 File: 2006 01_Chatham House conference_23-24Jan2006 Presentation [Mode de compatibilit??].pdf
in Kiel Economic Policy Papers no 2 Kiel Institute for World Economics, September 2005 and BIS Working Papers, no 193, January 2006
The successful pursuit of the objective of low inflation by central banks in recent decades has also delivered low variability of both inflation and output. At the same time, numerous financial and other “imbalances” (defined here as significant and sustained deviations from historical norms) have emerged. Should these imbalances revert to the mean, there could be significant effects on output growth. Although such an adverse outcome remains only a possibility, the question asked in this paper is whether we might still benefit from a new macrofinancial stabilisation framework in which monetary and regulatory policies gave more attention to avoiding the emergence of imbalances in the first place.
Paper presented at the Barclays Capital conference, Rome 9-11 October 2005 by William Roy White Economic Adviser and Head of MED Bank for International Settlements
Date: 9 October 2005 File: 9-11_1005 10_Barclays Capital conference 9-11 October 2005 by White – Speech.pdf
in the Irving Fischer Committee Bulletin: Proceedings of the Conference on “Central Bank Issues regarding National and Financial Accounts
Basel, 9-10 September 2004, no 19 edited by Hans van Wijk, November 2004, pages 33-37
Speech by William R White, Economic Adviser, Bank for International Settlements, at a Financial Stability Symposium organised by the Netherlands Bank and held in Amsterdam on 25-26 October 2004.
Date: 25 October 2004 ~1004_Amsterdam_presentation_25-26Oct2004_speech versionDecember04.pdf
Symposium – De Nederlandsche Bank NV, 25-26 October 2004, Pages 47-64
Date: 25 October 2004 ~1004_Amsterdam_presentation_25-26Oct2004_speech versionDecember04.pdf
Keynote presentation by William R White, Economic Adviser, Bank for International Settlements, at an Irving Fisher Committee conference on “Central bank issues regarding national and financial accounts”, Basel 9-10 September 2004.
Event or Meeting: Irving Fisher Committee conference Date: 9 September 2004 File: 2004 09_Conference Irving Fisher IFC_9Sep2004_speech.pdf
Significant attention has recently been directed to the optimal policy response when financial excesses threaten. This paper rather addresses issues pertinent to the appropriate policy response once financial difficulties have actually materialised. It begins with some empirical evidence concerning recent changes in financial structure (marketisation, globalisation and consolidation) and documents the rise in the number and variety of episodes of financial instability. The paper then goes on to examine the rationale for government intervention (use of safety net instruments) to reduce the costs of such financial instability, and cautiously concludes that the use of a number of such instruments has been on the rise. Moreover, the balance among them has also been changing. An attempt is then made to link these evolving policy responses back to the underlying changes in financial structure identified earlier. Since the use of safety net instruments always implies in principle some element of moral hazard, the paper concludes with an empirical evaluation of whether this seems to be a matter of practical importance, and whether “good design” might not have the potential to materially reduce such concerns. The conclusion reached is that sensible policies designed to contain the damage arising from financial instability can have less desirable longer-term consequences. Policymakers thus continue to face an inter-temporal optimisation problem.
Publication: Bank For International Settlements Date: 2 February 2004 work145_Are changes in financial structure extended safety nets.pdf