It is also complicated by the fact that normalisation in the advanced economies is likely to be unsynchronised, with further loosening expected in Japan and the Eurozone, while the Bank of England has indicated that the first policy rate increase could already occur later this year, but at a moderate pace.
Perhaps, it is the sheer enormity of the tasks ahead that creates confusion. Or perhaps, it is the absence of a holistic and formalized textbook framework that makes the journey to financial stability and maintaining it quite daunting. The financial stability agenda talks of co-mingled risks, and systemic consequences.