Of course, this does not mean that central banks are ignorant of what is going on in financial and real estate markets. At the Bundesbank, as at other central banks, we observe a large number of indicators which give us an idea of financial imbalances and also help us to predict macroeconomic conditions.
As a result, every single loan we made was repaid in full, on time, with interest. 6 Traditional oversight of the Federal Reserve was extensive and effective The Federal Reserve, like other parts of our democratic system of government, must be accountable to the public and its elected representatives.