Criteria for assessing financial market stability  The first challenge under quantitative easing is to select the criteria by which the Bank should assess the state of financial markets when conducting market operations. Some economists may argue that the quantitative easing framework requires the Bank to do no more than mechanically maintain the target balance for current account deposits every day.
Unfortunately, this is not necessarily the case. Even when the Bank maintains the target balance, there are cases in which financial markets remain unstable. In these cases, ensuring financial market stability becomes most important. Then, the question is how to assess subtle changes in financial markets in light of maintaining their stability.