## 2017 Michel Camdessus Central Banking Lecture Series: Managing Director's Opening Remarks

_IMF News, September 18, 2017_

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## Bibliographic details
- Authors: Christine Lagarde
- Published: September 18, 2017

---

### Overview
- Title: 2017 Michel Camdessus Central Banking Lecture Series: Managing Director's Opening Remarks
- By Christine Lagarde, IMF Managing Director
- Location and date: IMF HQ, Washington, DC, September 18 2017
- As prepared for delivery
- Contact listed: Phone: +1 202 623-7100 Email: MEDIA@IMF.org

### Key framing: "The Hockey Game"
- Central metaphor: the aftermath of the global financial crisis compared to an Olympic level hockey game.
- Timing and status:
  - This is the "fourth Michel Camdessus Lecture".
  - The game is described as "well into the second period" with central banks and other institutions "up in favor" for now.
  - Caution that "the game is not over yet—after all, hockey has three periods!"
- Achievements credited to policy responses:
  - "the crisis was overcome"
  - "a deflationary spiral avoided"
  - "a broad-based global recovery is underway"
  - Referred to as "A hat trick of sorts."
- Outstanding tasks:
  - "The unconventional and extraordinary policy measures taken during the crisis have yet to be unwound."
  - "Policy and regulatory frameworks need to be further refined."
  - "Lessons from the crisis need to be learned and remembered."

### Three uncertainties highlighted
- First uncertainty: basic economic mechanisms
  - Questions raised:
    - "What are the precise mechanisms that have underpinned the recovery and how robust is the current upswing?"
    - Why inflation remains subdued—both headline and core—despite very low unemployment in some countries (United States and Japan).
    - Whether the Phillips curve "has become flatter?"
    - Questions about the level of the equilibrium interest rate in normal times, the so called 'natural rate' — "has this rate fallen from prior levels? If so, by how much?"
    - Policy implications: "Do they allow for slower increases of interest rates? And at what level of interest rates is the 'normalization' complete?"
    - "To what extent monetary policy should worry about asset prices and financial stability."
- Second uncertainty: national politics and international relations
  - Example given: "uncertainty over the modalities and economic impact of Brexit."
  - General question: "How should policymakers deal with these big question marks?"
- Third uncertainty: rapid technological change (fintech and electronic payments)
  - Questions raised:
    - "Will digital currencies compete with fiat money and reduce the effectiveness of traditional monetary transmission?"
    - "How would this impact central banks’ ability to influence employment and inflation?"
    - "How will they safeguard financial stability?"
    - "To what extent should central banks embrace fintech?"

### Characterization of the speaker: "The Goalie: Mark Carney"
- Rationale for selecting Mark Carney as speaker/“goalie”:
  - Attributes sought: "an able pair of hands, good reflexes, a cool head, and strategic thinking."
  - Mark Carney described as having those qualities.
- Professional background and accomplishments (as stated):
  - Former Harvard team goalie (anecdotal), chose not to pursue NHL career.
  - Governor of the Bank of England; chair of the Financial Stability Board.
  - Early career: worked as a bank teller while in university; then as an investment banker at Goldman Sachs; later joined the public service team.
- Central banking record:
  - As Governor at the Bank of Canada: "deftly navigated the global financial crisis, including with proactive rate cuts—underpinning a stronger recovery in Canada than in most other advanced economies."
  - As Governor of the Bank of England: "advanced the macroprudential policy agenda and led a robust monetary policy response after the Brexit referendum."
- Global leadership and regulatory work:
  - As FSB Chair: "pushed strongly for an effective Basel III and other regulatory reforms" and "get consensus on controversial matters and move the agenda forward."
- Innovation and institutional change:
  - Credited with changes to the institutional design of the Bank of England "to make the institution more flexible and responsive to new challenges."
  - Bank intellectual leadership cited on "fintech and climate change."
- Quotation on strategic foresight:
  - Wayne Gretzky quote quoted in context: "A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be."
  - Conclusion: "Put simply, Mark is a great player."

### Closing and agenda for the lecture series event
- Speaker invitation and expectations:
  - Christine Lagarde: "I am deeply honored, Mark, that you have accepted our invitation to deliver the fourth Michel Camdessus Lecture."
  - Audience expectation: "All of us here look forward to hearing your thoughts on monetary policy and central banking."
  - Planned follow-up: "I also look forward to engaging with you in a conversation about the major challenges facing today’s central banks, after your remarks."
- Final line: "The floor—or should I say, the ice—is yours!"

*2017 Michel Camdessus Central Banking Lecture Series: Managing Director's Opening Remarks — By Christine Lagarde, IMF Managing Director (IMF HQ, Washington, DC, September 18 2017).*

---


## References

- [Christine Lagarde](https://www.imf.org/en/About/senior-officials/Bios/christine-lagarde)
- [Canada and the IMF](http://www.imf.org/external/country/CAN/index.htm)
- [United States and the IMF](http://www.imf.org/external/country/USA/index.htm)
- [Speeches](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2017/09/18/sp091817-michel-camdessus-central-banking-lecture-series-managing-director_