Monetary policy in a low-inflation environment What, then, can, or should, central banks do in this environment? Let me propose four elements for future reflection: how we define price stability, how we treat inflation expectations, how we measure inflation and how we implement monetary policy. Some proposals are more far-reaching than others.
Here, we must significantly step up our efforts and cooperate as closely as possible. Otherwise, we risk failing. Let me illustrate this with three examples. 4.1  Solving the too-big-to-fail problem  Solving the too-big-to-fail problem will, without a doubt, constitute the litmus test of financial sector reform.