adequate when legacy issues have been tackled. in addition to the necessary holistic approach, encompassing monetary, macro and microprudential policies, we need to move forward with concrete measures to improve the current legal framework, including ( i ) the setting up of a backstop for the single resolution fund and establishment of the european deposit insurance scheme ( edis ) ; ( ii ) the reinterpretation of the esm treaty to allow the esm to become a euro area backstop for financial stability purposes, and ( iii ) the change of the conditions under which the esm and other stabilization tools can be used. 3 / 3 bis central bankers'speeches

elisa ferreira : lessons from the crisis for central banks - a policy view remarks by ms elisa ferreira, vice - governor of the bank of portugal, at the joint bank of portugal and european central bank conference on " risk management for central banks ", panel 2 " lessons from the crisis for central banks - a policy view ", lisbon, 25 september 2017. * * * introduction economists and policymakers are still struggling to build a consensus on the long - run economic impact and on the policy implications of the financial crisis, 10 years past its beginning. in my view, there are two major lessons from the crisis : ( i. ) understanding macroeconomic equilibria requires knowing the interaction / transmission mechanisms of balance sheet positions of all agents in the economy, the behaviour of financial intermediaries and the interlinkages between the financial and non - financial sectors of the economy ; this has implications on the design of economic policy, notably monetary and macroprudential policies, and on the need for interaction between monetary, macroprudential and microprudential policies ; ( ii. ) the european architecture was unprepared to face the financial crisis and, despite several major steps observed in recent years, we are still living within an incomplete setup ; a holistic approach – combining ( i ) steps in micro and macroprudential policies, ( ii ) policy action to implement the three interlinked pillars of the banking union ; and ( iii ) further coherent steps in economic integration are warranted. in these remarks i would like to briefly touch upon each one of these lessons, having in mind the policy implications that may arise for the euro area. ( i ) the return of financial issues to centre stage in economic thinking and the challenges still faced at the current juncture one of the insights from the crisis is that real and financial interactions can only be ignored at our peril. this has implications for economic modelling and for the design of monetary and macroprudential policy strategies. in particular, should financial stability considerations be incorporated in the conduct of monetary policy? what is the effectiveness of macroprudential policy when some of the risks for financial stability have already materialized and the macroprudential “ buffers ” were not build up beforehand? how do monetary policy and macroprudential policy interact in practical terms? issues such as how to optimally coordinate policies and how to avoid time - inconsistency problems in this coordination are still outstanding. this is even more evident in a