simon m potter : implementing monetary policy post - crisis – what have we learned? what do we need to know? remarks by mr simon m potter, executive vice president of the markets group of the federal reserve bank of new york, at a workshop organized by columbia university sipa and the federal reserve bank of new york, new york city, 4 may 2016. * * * i would like to thank antoine martin for his assistance in preparing these remarks. i would like to welcome you to this workshop, organized jointly by the school of international and public affairs at columbia university and the federal reserve bank of new york. we have assembled an excellent set of presenters and discussants focused on the topic of implementing monetary policy post - crisis, who are here to ask important questions such as what have we learned from our experience and what do we need to know going forward? i am expecting an active and stimulating dialogue on a range of topics. as always, these remarks are my own and do not necessarily reflect the views of the federal reserve bank of new york or the federal reserve system. as most of you know, the federal reserve system is engaged in an extended effort to evaluate potential long - run monetary policy implementation frameworks. 1 there are many reasons to take a close look at the issues now. for example, the federal reserve has new tools, like the authority to pay interest on reserves and reverse repurchase agreements with an expanded set of counterparties, which were not available pre - crisis. 2 the money markets in which the trading desk of the federal reserve bank of new york ( the desk ) operates have different dynamics than before, in part because of our large - scale asset purchases. we want to take stock of these changes and ask ourselves what the best way of implementing monetary policy is today and in future environments in a manner that is consistent with the federal reserve ’ s normalization principles. 3 to make good choices about the monetary policy implementation framework going forward, it is, of course, useful to learn from the past. our task is to assess the strength and weaknesses of existing and previous frameworks, particularly through the lens of what happened during the recent global financial crisis, when central banks were called on to innovate in a number of ways. in addition, the varied experience of other central banks prior to the crisis can also provide valuable insights. what have they learned about what worked well, or did not work so well, with their frameworks? the current framework in the united states looks very

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