Of course, the assessment of the stance of monetary policy also depends on a variety of other important factors. Conclusion In summary, liquidity has risen significantly, with important benefits to our financial system and economy.
An important source of strength has been financial innovation, and while we have yet to see how some new products will play out in a more stressful environment, there almost certainly will remain a greater dispersion and insurability of risks. Stable output and price stability have also been important contributors to liquidity and investor confidence by helping to anchor views about longerterm economic outcomes.