Central banks urged to rethink obsession with financial stability after historical analysis
The article looks at how monetary policy and financial stability have evolved over time in different countries. It shows that financial crises have various causes, including credit and asset price booms. Two major examples are the crises in the 1920s and 30s, and the Global Financial Crisis of 2007-2008. The research suggests that these crises should make central banks cautious about making permanent changes to how they manage money and financial stability.