At other times, the costs loom larger. Indeed, in normal times, when economic and financial risks are clearly two-way, there is a very basic law of economics at work. Volatility happens. It is a force of nature.
Economists call this underlying volatility “shocks” – unexplained shifts in consumer demand or business behaviour, or oil-price shocks, or shocks from foreign economies, and, yes, financial market shocks. This volatility must go somewhere in the economy. Central banks target inflation, which means stabilizing inflation and economic growth, not interest rates.