ContextClosing remarks at a conference in Basel honouring the speaker's 45-year career; the BIS serves central banks worldwide and helps them learn from past policy lessons.
Why it mattersThe outgoing BIS head reflects on four decades of policymaking, from inflation targeting to monetary-fiscal conflicts.
Problems raised
Supply behaviour in global value chains is poorly understood.
Inflation expectations are hard to model.
Monetary and fiscal policy can clash.
Solutions proposed
Build flexible exchange rates and inflation targeting.
Grant central banks autonomy.
Ensure consistency between monetary and fiscal policy.
