Facing the challenges of today Central banks today need to exhibit the same degree of persistence, courage and commitment. As much as Volcker repeatedly and tirelessly warned of the risks of too high inflation, central banks today need to explain, over and over again, why long periods of too low inflation are just as much a problem to society.
8 Similarly, the SRF is only being gradually built up and will not reach the target level until 2024, ten years after the implementation of the SRM Regulation. Reforms take time. But we should not stop now. Minsky9 taught us that good times breed complacency, exuberance and optimism among market participants. They can also lead to complacency among public authorities.