Bank of England official Andrew Haldane said that officials will need to show humility and may make mistakes as they adopt new regulatory tools to prevent future financial crises.
“The state of macro-prudential policy today has many similarities with the state of monetary policy just after the second world war,” Haldane said in a Nov. 20 speech in New York co-written by David Aikman and Benjamin Nelson. “Data is incomplete, theory patchy, policy experience negligible. Monetary policy then was conducted by trial and error. The same will be true of macro-prudential policy now.”
