· François Villeroy de Galhau Wiki · Banque de France WikiMonetary policy in perspective (II) - three landmarks for a future of "great volatility"
Read full speech on bis.org ↗ContextLecture at the London School of Economics; the Banque de France keeps prices stable and prepares monetary policy for a future of high volatility.
Why it mattersThe French governor sets landmarks for policy in an era of great volatility.
Problems raised
- The decade brought an unlikely sequence of shocks.
- Volatility will stay high.
- Inflation risk premia raise funding costs.
Solutions proposed
- Keep credible monetary policy.
- Anchor long-term inflation expectations.
- Set landmarks for an era of great volatility.