Does that really mean that money no longer matters – and that it should not matter for monetary policy? No, clearly not. Firstly, from an empirical point of view, there is plenty of evidence that monetary aggregates contain valuable information about risks to long-run price stability and the monetary transmission process.
But before doing so, I must say that after the global economic crisis, the buzz word all over is macro-prudential supervision. It is built on the clear lessons of the crisis that a set of financial institutions that are sound on a stand alone basis is not an assurance of financial stability.