This debate has thrown up some important questions: (i) Should central banks persist with pure inflation targeting? (ii) If not, should their objective function also include real sector variables? (iii) What is the role of central banks in preventing asset price bubbles? (iv) What should be their responsibility in regard to financial stability?
(v) Are there synergies in the central bank being also the regulator and supervisor of banks? (vi) Will responsibility for financial stability compromise their autonomy? (vii) What should be the institutional arrangement for coordination among regulators and the government? 5. That indeed is a long list of questions.