Rather, it is a simple recipe for higher inflation. We need an appropriate mix or combination of both macroeconomic and  4  BIS Review 97/2010  microeconomic policies that will bring about higher productivity, higher growth and employment in a low inflation environment. Today, what is clear is that central banks the world over have been given additional responsibilities, explicitly or implicitly.
Expectations are that central banks will, and can, deal with macro-prudential, micro-prudential, financial stability, crisis management, provision of liquidity and still meet their core responsibility, namely independent execution of monetary policy. Financial stability crises build up over years, and what the prevailing global crisis has shown is that it is much harder to restore financial stability once it has been lost than previously anticipated.