Although the role of monetary policy in the build up of the crisis is still debated, it does influence in an important way the price of leverage.1 Lack of attention and preparedness to tail-events has been particularly striking.
While central banks have always paid attention to the possibility of extreme events in payments and posttrade infrastructures, too little efforts have been devoted to the prevention of the conditions under which emergency liquidity assistance would be provided to the financial sector. Other authorities were concerned, such as supervisors at the micro-level and ministries of finance.