In the event, the crisis challenged the old theology of single target central banking. It also showed up the failure of central banks to correct for the rapidly growing global imbalances and to keep regulation in pace with financial innovation.
Indeed, some even argue that the extended period of steady growth and low inflation blindsided central banks from seeing the festering financial instability brewing in the underbelly of the global financial system. 4. The crisis has unleashed a vigorous debate on what lessons central banks should take away from the crisis, and how they should respond to them.