federal reserve bank of kansas city and greenwood, r., s. g. hanson and j. c. stein, ( 2016 ), “ the federal reserve ’ s balance sheet as a financial tool ”, presented at the 2016 jackson hole symposium of the federal reserve bank of kansas city. stressed the importance of the u. s. federal reserve ’ s reverse repurchase agreement programme ( rrp ) through which it repos against cash securities on its balance sheet. the first group of authors advocate the continued use of this programme in order to involve more counterparties and to affect several interest rates beyond the overnight rate, thereby contributing to a better transmission of monetary policy. the decline in size and importance of the unsecured interbank money market affects the pass - through to other maturities. a second set of objectives relates to central banks keeping a large balance sheet as a way to steer the supply of safe assets, particularly through the same rpp, to create very short - term safe assets. this fosters greater financial stability by avoiding unsuccessful private sector attempts in fulfilling that role and amplifying risks in financial markets as seen before the crisis. this is an important issue as the attempt to create safer private assets was behind the expansion of a shadow banking sector that played a significant role in the crisis. 5 see constancio, v., ( 2017 ), “ the future of monetary policy frameworks ”. finally, a third objective was recently expressed by the president of the new york fed6 see william, d., ( 2017 ), “ the u. s. economic outlook and the implications for monetary policy ”, speech on 7 september 2017 available in. that it would be justified to keep a balance sheet with a sufficient size in order to enable the use of bank reserves ’ remuneration and the rrp as ways to steer short - term rates, instead of using open market operations only as was previously the case. 5 / 9 bis central bankers'speeches in the euro area, some similarities regarding the transmission via the unsecured interbank market may justify in the future, reflections on these new aspects of conducting monetary policy. meanwhile, the predominantly bank - based nature of the european financial system allows us the possibility of going back to a “ leaner ” balance sheet, with lending to banks remaining the main channel for managing liquidity and steering short - term interest rates. asset purchase programmes would be in any case a potential tool to be applied again in future contingencies,

durmus yilmaz : globalization and monetary policy speech by mr durmus yilmaz, governor of the central bank of the republic of turkey, at the conference on “ globalization, inflation and monetary policy ”, istanbul, 21 november 2008. * * * dear guests, i would like to welcome you all to the conference on “ globalization, inflation and monetary policy ”, organized by the central bank of turkey. this conference will host a select group of central bankers, experts and academics today and tomorrow. it is a great pleasure for us to host this conference and such a distinguished group of participants. during these two days we will have the opportunity to discuss the globalization and monetary policy aspects in the context of current financial turmoil. dear guests, we have in the midst of fast changing economic agenda. when invited to an international conference in the spring of 2008, i was requested to make a speech on inflationist pressures faced by world economies. the title of the session was “ inflation : is it back to stay? ”. in fall 2008, a few weeks before the start of the conference, the organizers informed me that they had changed the theme of the conference. the new title was “ how to cope with deflationary risks? ”. in a very short span, the main talking points of the policy makers have shifted from “ decoupling ”, “ high energy prices ” and “ food inflation ” to “ deflation ”, “ recession ” and “ credit crunch ”. today, international financial system shaped more and more by globalization is on the brink of a crucial stage. the problems, which started in sub - prime mortgage markets in the united states, have spread the whole financial system and reached a point that threatens the economic stability. indicators on risk perceptions are at its highest level of all times. we have witnessed some relief in the liquidity shortage after the establishment of temporary reciprocal currency arrangements of federal reserve bank ( fed ) and short term liquidity facility established by imf, which is designed to help member countries that are facing temporary liquidity problems in the global capital markets. however, despite these measures, liquidity squeeze in the credit markets and reluctance in bank ’ s tendency to lend credit have been unabated. one of the adverse features of the current crisis is the freeze in the private credit and the tendency of capital to flow back to where the current crisis originated. recent readings on economic activities suggest that ongoing problems in international credit markets have spilled over into the real economy as