The decision by central banks whether or not to provide additional liquidity to markets and to bail out failing banks has its own set of complexities. Clearly central banks have to be concerned about systemic risk.
On the basis of data available up to January, the underlying money and credit expansion remains strong, even taking temporary factors into account, such as the relatively flat yield curve. There is little evidence that the financial market turbulence since August 2007 strongly influenced the overall dynamics of broad money and credit aggregates.