the imperative of a macroprudential policy perspective means taking account of system - wide effects as financial regulation is developed and implemented. but as is the case with traditional microprudential policy, agreement at this high level does not necessarily assure agreement on the priorities for regulatory attention, much less the specific regulations that should be adopted. nor can even the best - conceived macroprudential policies compensate totally for the risks created by key macroeconomic or financial conditions. it should, however, force us all to think about issues like arbitrage, correlated risks and responses, and externalities in a more explicit and regular fashion than was evident in pre - crisis practice. and even as policymakers try to move forward with a practical agenda to incorporate macroprudential concerns in their programs, it is important that the academics and policy researchers represented by this audience continue to advance this still fledgling sub - discipline through both theoretical and empirical work. bis central bankers ’ speeches

keep in mind. first, some of the treasury and gse debt that we are acquiring will run off over the next few years without any need for outright sales, as will some of the mbs as individuals sell or refinance their homes. second, the yield curve currently has a steep upward slope. accordingly, we are now earning an abnormally high net rate of return by funding our acquisition of long - term assets with almost zero - cost excess reserves – and this relative yield relationship is likely to last for some time. thus, in judging the potential budget cost over time, any possible future interest - rate - related losses need to be balanced against the current elevated level of our net interest income. third, our purchases of long - term securities are boosting economic activity and, in the process, increasing government tax receipts relative to what they would have been in the absence of such purchases. 6 all in all, although we have now taken more interest rate risk onto our the mechanism for this effect seems to work, in part, through the habitat preference of investors for long - and short - term debt. moreover, through indirect effects on other financial markets, lsaps can also be effective in reducing interest rates on many other types of household and business credit. although any calculation of the effect of our asset purchases on the economy is highly uncertain, estimates from our models suggest that nominal gdp could be as much as $ 1 trillion higher over the next several years than it would be without the large - scale asset purchase program. such stimulus would not only significantly improve the economic welfare of our nation's citizens, but also could provide the federal government with as much as about $ 175 billion in greater tax revenues than it would otherwise receive. balance sheet than usual ( at a time when the private sector wants to avoid this risk ), that action may boost, rather than reduce, the cumulative net income of the treasury. turning to our credit facilities, our usual lending through the discount window has been extended to new intermediaries – including primary dealers, money market mutual funds, and participants in securitization markets such as hedge funds and pension funds. and we have intervened more directly in severely impaired markets, such as those for commercial paper and securitized consumer and mortgage debt. we believe these interventions have been successful in supporting economic growth by bringing down interest rates on the instruments involved, preventing fire sales of assets by intermediaries that would otherwise not have access to liquidity, and facilitating new lending