Jacob Frenkel: Must Handle Financial Industry With Care

The transcript discusses the evolution of economic policies from the Plaza Accord to the 2007 crisis, emphasizing the interconnectedness of economics and the banking system. It highlights the growing importance of the financial sector in policymaking, especially in the context of low or negative interest rates, which necessitate new business models. The discussion also covers the role of the financial sector in transmitting monetary policy effects and the potential for crises originating from a vulnerable financial sector. The importance of maintaining a strong and resilient financial sector is underscored.

In what ways can policymakers address the challenges posed by a fragile financial sector?

What historical accords are mentioned as attempts to create coherent economic policies?