| Abstract: | I review the workings of the United Kingdom's Financial Policy Committee to illustrate the challenges of implementing macroprudential policy. I describe the committee's remit, explain my views on the channels of financial instability that the committee tries to mitigate, describe the tools the committee has its disposal and outline the principles it uses in deploying these tools. I conclude by offering some of the lessons I have learned in serving on the committee and highlighting a few challenges for macroprudential policymakers. |
