The central banks are still powerful. They can make the financial markets rise or plunge them into the doldrums. But the CBs need to scrutinise the financial system and its systemic risks more closely.
SAO PAULO | By Benjamin Cole via Historinhas | Sadly for Americans, the Fed of 2008 would pull out the 50-year-old playbook and repeat the mistakes of the Fed of the 1950s. Rattled by minor increases in prices, the 2008 Fed stomped on the brakes, bringing on the Great Recession from which the nation has yet to fully recover.