Claudio Borio

Renowned economist Dr. Claudio Borio and Joseph Wang discuss the interplay of monetary and fiscal policy, risks of high debt, self-reinforcing credit expansion, high vs low inflation regimes, correlation between money and inflation, and the impact of interest rate risk on the banking system and economy.

Renowned economist Dr. Claudio Borio and Joseph Wang discuss the interplay of monetary and fiscal policy, risks of high debt levels, inflation regimes, and the implications of credit losses. Touches on the role of central banks in shaping financial cycles and the need for regulation.

Claudio Borio delves into the lessons learned from the past 25 years in monetary policy, emphasizing the need for a comprehensive macro-financial stability framework. He discusses the challenges faced by central banks in communication, forecasting inflation, and using macroprudential measures for financial system stability. The podcast explores possible refinements in monetary policy frameworks for price and financial stability through considerations like robustness and nimbleness.

The podcast discusses various topics including central bank caution, market optimism, impacts on market volatility, bond markets, inflation, exchange rates, and economic growth. It also explores inflation drivers, interest rates, bond market liquidity, technology's impact on asset prices, stock market bubbles, and the complexities of R-Star measurement for monetary policy decisions.

Claudio Borio, Head of the Monetary and Economic Department at BIS, discusses the challenge of large balance sheets at central banks. They explore the shift from the pre-2008 scarce reserve system to the abundant reserve system. They also discuss the political pressure on central bank balance sheets and the implications for fiscal policy.