to success and pitfalls to be avoid. in order to promote learning from other policy areas and to facilitate a structured dialogue between policymakers and academia, the german national academy of science leopoldina, in cooperation with the deutsche bundesbank, organized a workshop in 2018. 13 here are examples of issues that were addressed in this workshop. in germany, the federal ministry of finance has been conducting so - called “ spending reviews ” since 2018 ; analysing revenues and spending decisions and scrutinizing their effectiveness and efficiency. 14 the german national regulatory control council has developed a concept for structuring ex - post impact assessments applying to all funds spend by the federal government and, more recently, argued in the favor introducing quality standards for such evaluations. 15 an area in which policy evaluation in germany has advanced most are labor market reforms. in the early 2000s, the german government embarked on comprehensive labor market reforms aimed at reducing unemployment, improving access to work, making new job relationships more sustainable, and enhancing the efficiency of the employment agencies. public interest in a 3 / 7 bis central bankers'speeches deeper investigation of the effects of these reforms was sparked by persistently high unemployment rates and the perceived ineffectiveness of policy. there were a number of critical factors that affected evaluations of these policies. first, the evaluation was designed with a view to providing a systematic and broad overview. second, academic research had a range of appropriate tools available, making it possible to provide robust results within a reasonably short time - span. third, a mandatory reform evaluation was enshrined in law. finally, a common concept developed by participating research institutions provided guidance on practical and analytical aspects of the evaluation. another example of evidence - based policy is the “ what works ” network, an initiative launched by the british government in 2013. 16 the network consists of independent what works centres and affiliate members. the what works centre for local economic growth, for instance, analyses which policies are most effective in supporting local economic growth. in practical terms, it reviews and summarizes existing evidence in meta studies, builds databases on relevant work or provides guidance to practitioners on how to meaningfully approach evaluations, for example by providing technical training, supporting piloting and testing local economic schemes or developing case studies which portray particularly useful evaluation techniques. 3 the role of international organizations evidence - based policy promises huge gains – better policies at potentially lower costs. but evidenced - based policy is not a holy grail. it does not overturn the

in addressing the trilemma. in the technical sessions, the first session on “ conducting monetary policy post - crisis : challenges to transmission mechanism and operating framework ” focused on whether the framework of monetary policy needs to be re - designed in the light of lessons drawn from the crisis. leading the discussion, professor benjamin friedman drew attention to the interplay between financial stability and responsive monetary policy. he suggested that one has to look into the three building blocks of macroeconomic and financial policy - set, in order to prevent the recurrence of crisis. the three elements of the policy - set are : one, monetary policy centered on an active use of short - term interest rates ; two, an intermediation system built on banks and other deposit - type institutions with significantly leveraged balance sheets and three, asset markets characterised with open entry and free trading. prof. friedman articulated that if these policy mix sow the seeds of the crisis, there is a need to change the policy mix. bis central bankers ’ speeches professor eswar prasad argued that central banks need not be constrained by the orthodox one instrument one target framework but need to explicitly address the financial stability concerns. he argued that under more realistic conditions of imperfect markets and credit constrained consumers, flexible headline inflation targeting could be the optimal monetary policy framework. in the indian context, mr. deepak mohanty provided evidence that policy rate increases have a negative effect on output growth with a lag of two quarters and a moderating impact on inflation with a lag of three quarters and the overall impact on inflation persists through 8 – 10 quarters. summarising the first session, mr. h r khan, deputy governor emphasized that the orthodoxy that central banks should restrict themselves just to setting interest rates and not regulate or supervise financial markets has come under question since the financial crisis. dr. subir gokarn, deputy governor highlighted three important messages from the session : one, monetary policy framework should not be locked into single target, two, more flexibility in defining objectives and instruments is necessary, three, boundary conditions for policy environment keep changing, but transmission within the boundary conditions is what a central bank could aim at. the second session was devoted to the theme, “ impact of crisis on sovereign debt : implications for macro - economy and inter - linkages with other policies ”. in this session, frank smets suggested that large scale asset purchase programs can lower long term interest rates. but there is a risk that the central bank could lose its hard earned credibility