united states, see gagnon and others ( 2010 ), d ’ amico and king ( 2010 ), and hamilton and wu ( 2010 ) ; for the united kingdom, see joyce and others ( 2010 ). and interdependent, novel policy challenges will continue to require innovative policy responses. third, as was the focus of my remarks two years ago, in addressing financial crises, international cooperation can be very helpful ; indeed, given the global integration of financial markets, such cooperation is essential. central bankers worked closely together throughout the crisis and continue to do so. our frequent contact, whether in bilateral discussions or in international meetings, permits us to share our thinking, compare analyses, and stay informed of developments around the world. it also enables us to move quickly when shared problems call for swift joint responses, such as the coordinated rate cuts and the creation of liquidity swap lines during the crisis. these actions and others we ’ ve taken over the past few years underscore our resolve to work together to address our common economic challenges. references chehal, puneet, and bharat trehan ( 2009 ). “ talking about tomorrow ’ s monetary policy today, ” frbsf economic letter 2009 – 35. san francisco : federal reserve bank of san francisco, november 9. d ’ amico, stefania, and thomas b. king ( 2010 ). “ flow and stock effects of large - scale treasury purchases, ” finance and economics discussion series 2010 – 52. washington : board of governors of the federal reserve system, september. gagnon, joseph, matthew raskin, julie remache, and brian sack ( 2010 ). “ large - scale asset purchases by the federal reserve : did they work? ” federal reserve bank of new york staff reports 441. new york : federal reserve bank of new york, march. hamilton, james d., and jing ( cynthia ) wu ( 2010 ). “ the effectiveness of alternative monetary policy tools in a zero lower bound environment, ” working paper. san diego : university of california, san diego, august ( revised november ). he, zhongfang ( 2010 ). “ evaluating the effect of the bank of canada ’ s conditional commitment policy, ” bank of canada discussion paper 2010 – 11. ottawa : bank of canada, august. joyce, michael, ana lasaosa, ibrahim stevens, and matthew tong ( 2010 ). “ the financial market impact of quantitative easing, ” working paper 393. london : bank of

debt has risen but household and financial sector debt is lower now and the lower post crisis levels have been stable for a number of years. advanced economy corporate debt, however, has grown rapidly in recent years in some major jurisdictions, particularly the us, and its riskiness has increased. the pricing of risk in financial markets is relatively compressed by historic standards, as is market volatility. but recent events suggest the market may be very sensitive to changes in expectations of growth or inflation. for uk assets, there has been the additional impact of fluctuations in brexit news and sentiment. the evaluation of brexit outcomes seems to have dominated responsiveness to near - term domestic news. all speeches are available online at www. bankofengland. co. uk / speeches as always, the risk picture is mixed. from a financial stability perspective, the right response to this picture is to ensure that the financial system is sufficiently resilient to a very severe but plausible correction in values should it occur. a colleague of mine recently asked me why the financial stability side of the bank was so gloomy, always pointing to risks on the horizon and seeing the glass as half empty at best? my answer was that it was our job to worry about what could plausibly happen - and to ensure that if it did happen, the glass did not suddenly empty entirely. all speeches are available online at www. bankofengland. co. uk / speeches