Even as monetary policy, both in advanced and emerging market economies. is going through a “revolution”, one thing is clear. Central banks cannot fix economies by themselves. Governments need to act too from the fiscal side, and monetary and fiscal policies have to act in harmony. On top of this, governance needs to improve to inspire the trust and confidence of consumers and investors.
21. The crisis is still with us; and the revolution in monetary policy is still work in progress. But it has thrown up a number of questions. How will this revolution play out? What will it mean for the mandates of central banks and the autonomy with which they will deliver on that mandate? Who will win and who will lose?