Central Bank Tightening: What Could Break?

Central banks’ aggressive policy tightening has raised concerns about what could break in a global financial system accustomed to low rates. Which financial stability risks are worth watching, whether policymakers have the tools to manage those risks, and if they could prompt central banks to slow or even pause tightening, is Top of Mind.

For answers, Goldman Sachs’ Top of Mind team speaks with Jeremy Stein, Professor at Harvard University and a former Federal Reserve Board Governor, and Vítor Constâncio, former Vice President of the European Central Bank, as well as Goldman Sachs economists and strategists.