Jackson Hole Economic Symposium, 27 August 2022 Monetary Policy Post-Pandemic: Balancing between Science and Art, Predictability and Reactivity  Speech by François Villeroy de Galhau, Governor of the Banque de France  Page 1 sur 8 Ladies and Gentlemen, This is the first time I have been able to attend the Jackson Hole symposium, but this renowned event epitomizes something I have always found of great value in the daily practice of central banking: the continuing conversation between policy makers and economic researchers. In this respect, the central banking world is a remarkable exception relative to most public policy making. This unique culture brings with it the recurring debate of how much of monetary policy amounts to science or art. This is especially the case at the end of a very uncertain summer: for Europe at least, growth prospects for next year have receded, and inflation prospects increased, due to energy and gas price pressures and additionally to the evolution of the exchange rate. Today I would like to briefly look back at how useful science has been in the past (I). I will then offer suggestions on how to balance art and science in the current policy environment: in finding a “new predictability” despite the weakening of forward guidance (II), and in facing the unprecedented challenge of the positive remuneration of massive excess liquidity (III). I. Science did well both before and during the pandemic The view that monetary policy consists of science was perhaps most prominent during the Great Moderation.

While this represents a large gap in insurance protection in the region, this also points to significant opportunities for rapid growth and developments in the near future. The ASEAN insurance market hosts a diverse group of foreign players. Many have strong presence in the region and even pioneered the development of the insurance market in some member states. Similar to most ASEAN countries, Malaysia welcomes their participation. In 1/4  BIS central bankers' speeches  2017, foreign players represent almost half of the ASEAN insurance market participants, including via participation in domestic companies. These players have brought in sound business models. Their strengths and expertise have contributed to the development of the regional insurance industry. They have been given greater market access through liberalisation measures undertaken by ASEAN countries over the years, such as that in the marine, aviation and transit insurance segment. Nevertheless, comparing against the speed of expansion of foreign insurers in the region, one can argue that the pace at which the full translation of the corresponding benefits to the development of the local insurance markets remains uneven. I would like to share three observations of their presence that could be relevant: First, we can acknowledge that foreign insurers have contributed positively and extensively towards the more pragmatic and contemporary regulatory enhancements. However, this also means that regulatory design is heavily influenced by them. In other words, there could be risks of regulatory capture where policies and decisions could favour the foreign players at the expense of the local industry and public.