During the crisis central banks also intervened in a number of dysfunctional markets on an emergency basis.27 It seems unlikely that these interventions will continue after the crisis has abated. Nevertheless, the fact that these interventions occurred and were perceived as successful suggests that central banks will be less hesitant to intervene if these markets were to face renewed stress.
Perhaps the greatest lesson for monetary policy makers from the crisis is that in an emergency, they should think more expansively of their role in ensuring market functioning. During the crisis central banks engaged in large scale asset purchases, in particular of government bonds, which were undertaken to depress long-term interest rates.