This is designed to stabilize the situation so that an orderly work-out of the banking system problems can be carried out. This measure enables banks suffering form lack of liquidity due to massive withdrawals to get liquidity support form the central bank as the lender of the last resort. 5. On the low (mostly negative) capital base. Quite logically, something has to be done.
Central banks globally need to have more respect for these determinants of inflation, and advanced economies should consider taking greater comfort from minor recessions, instead of prolonged periods of weak growth that bedevil larger emerging economies like mine. Together, cyclical and ongoing structural forces will present a rich and varied set of topics for central banks to focus on in coming years.