Central banks' expanded role threatens financial stability and political independence.
Central banks have taken on a bigger role since the 2008 financial crisis, using unconventional monetary policies like quantitative easing to stabilize economies. However, relying solely on these measures may not solve long-term structural issues. The relationship between central banks and governments is changing, with governments pushing the boundaries of monetary policy while avoiding necessary reforms. This shift challenges the traditional idea of central banks being independent and solely focused on controlling inflation.