Macro-Financial Stability in the New Normal

The global financial crisis has highlighted weakness in macroeconomic and regulatory policies and market failures that contributed to a buildup of systemic risks. In this context, numerous questions have arisen. What was the role of monetary policy and financial regulation in contributing to vulnerabilities? How can monetary policy be adapted to achieve greater financial stability? What are the lessons from the crisis for the design of macro-prudential policies and regulations? What are specific lessons for emerging markets that are experiencing large and volatile capital flows? Is there a need to revisit financial liberalization?