· François Villeroy de Galhau Wiki · Banque de France WikiNavigating an uncertain world - steering monetary policy in the right direction to hold our course
Read full speech on bis.org ↗ContextSpeech by the Governor of the Banque de France to students and staff at Sciences Po in Paris, where he taught economic policy.
Why it mattersThe Banque de France Governor explains how a central bank decides when uncertainty cannot be measured.
Problems raised
- Uncertainty is high and cannot be measured.
- A negative supply shock raises inflation and slows growth.
- Stress could spread to markets, weak firms and private credit.
Solutions proposed
- Separate real information from noise.
- Stay credible and decide under uncertainty.
- Watch financial vulnerabilities closely.