Moreover, as Bernanke, Mishkin, Gertler and others have shown, and as recent experience has vividly demonstrated, information asymmetries and other financial market imperfections play a crucial role in determining the stability of the financial system and business cycle fluctuations.
The analysis of the role of money and credit (i) in the transmission of the effects of monetary policy and (ii) as information variables that can provide useful signals for the assessment of risks to price stability and financial stability need not be confined to the further development of DSGE models. These models have great merits but also limitations.