Since the global financial crisis of 2008, a combination of adverse structural and cyclical factors jointly contributed to the rapid erosion of central banks’ conventional policy space (Chart 5). Chart 5 Central bank policy rates (%)  Source: BIS. Note: The policy rate for the euro area refers to the main refinancing operation (MRO).
In other words, as one IMF research paper of 2004 puts it, a financial system is in a range of stability whenever it is capable of facilitating the performance of an economy, and of dissipating financial imbalances that arise endogenously or as a result of significant adverse and unanticipated events1. The Global Context 3.