Today, the Japanese Governor had a calm speech. He transmitted the idea that the economic cycles bring with them crisis which alert the economists that it’s time to make some changes in the financial system. Based on the wisdom accumulated during the decades and on the fact that the system of trial and error is working, currently, the governments of the economies in trouble will find for sure the solution of their problems. Might be just a matter of time. To keep in mind is that there will come the time when these rules won’t work anymore, so, our adaptability feature is needed.
Moreover, he highlighted the argument of financial trilemma, which states that an economy cannot achieve financial stability, capital mobility and national financial policy in the same time. As solutions to the present problems, Governor Kuroda listed: the capital control and financial regulation and supervision.
On the other side of the world, in Canada, Carney had his last speech as Governor of the Bank of Canada. He decided to keep the overnight rate at 1%, motivating that the economy is doing well, the monetary policy stimulus is on the table with chances to be adjusted when the situation will require it.