janet l yellen : welcoming remarks speech by ms janet l yellen, chair of the board of governors of the federal reserve system, at the “ monetary policy implementation and transmission in the post - crisis period ”, a research conference sponsored by the board of governors of the federal reserve system, washington dc, 12 november 2015. * * * it is my pleasure to welcome you to the federal reserve board ’ s conference on “ monetary policy implementation and transmission in the post - crisis period. ” the conference aims to bring together academic and central bank economists, financial market practitioners, and policymakers to stimulate debate and research on a topic that is critically important to the federal reserve ’ s mission of conducting monetary policy in the pursuit of maximum employment and stable prices. the global financial crisis had profound effects on our economy, and it altered the way many think about monetary policy. at the peak of the crisis and during its immediate aftermath, unconventional monetary policy measures were designed and implemented by the federal reserve and other central banks around the world. the post - crisis period has offered policymakers an opportunity to assess a range of novel policy and operational issues associated with the conduct of monetary policy and the effectiveness of different policy options. specifically, policymakers have to carefully weigh the advantages and disadvantages of alternative monetary implementation frameworks in the presence of new policy tools. moreover, policymakers should be mindful of new channels for monetary policy transmission that may have emerged from the intricate economic and financial linkages in our global economy that were revealed by the crisis. finally, it is crucial to understand the effect of regulations and possible changes in financial intermediation on monetary policy implementation and transmission. the impressive conference program covers the following topics in three sessions : monetary policy implementation, the transmission of monetary policy, and the effect of regulation and financial intermediation on monetary policy implementation and transmission. the presentations and discussions of the 12 academic papers on the conference program will surely provide a foundation for what i expect will be a stimulating discussion of important topics over the next two days. looking ahead to later today, i am delighted that vice chairman fischer will deliver keynote remarks on the exchange rate mechanism in the transmission of monetary policy. tomorrow the conference concludes with two interesting policy panels on the effect of regulations on monetary policy and the “ optimal design ” of monetary policy in the post - crisis world. let me also say that i consider the topics covered during this conference highly relevant for the federal reserve system ’ s ongoing efforts to evaluate potential long - run monetary policy

rba in its normal operations. while a fee will be charged for this facility, i don ’ t see that affecting the relative demand for securities, other than cgs and semis, for the following reason. one can think of the current situation as an arrangement where a flat rate of zero is charged. banks currently hold a range of assets to satisfy their liquidity requirements, with each asset having different credit, maturity and market liquidity characteristics. our view of how much we are willing to lend against each asset under repo are based on these characteristics, and will continue to be so. in the future, we are moving to a world where there will be a formalised liquidity facility where a flat, positive fee is charged. so that should affect all asset classes equally and should not affect their relative attractiveness. so i would not expect this to change bank balance sheet ’ s demand for the non - government assets they hold in their liquidity portfolios. for example, to the extent they hold ssas today, they should still hold them in the future. for more details on the apra media release, see apra clarifies implementation of global liquidity standards in australia, 28 february 2011. for more details on the joint rba and apra media release, see joint media release : australian implementation of global liquidity standards, 17 december 2010. bis central bankers ’ speeches conclusions in my talk i have described the configuration of the bond market as it stands in early 2011. the structure of the market has changed noticeably after the events of recent years. some of the dynamics that have emerged from the crisis may continue to shape the bond market in the future. i have highlighted three here today : first, the relative growth of deposits and credit may be quite different from that observed over the previous fifteen years. this, together with regulatory and other pressures, will have a material effect on the composition of bank liabilities. second, while asset - backed issuance was most disrupted by the crisis, there are signs of a re - emergence. third, investors have a much stronger preference for high - quality assets than they did in the pre - crisis period. bis central bankers ’ speeches