Shocks can be more or less persistent and I would certainly argue personally that given the persistence of the adjustment process over a long period of time in the euro zone, the definition of medium term under the current environment is probably longer than what it would have been under different kind of shocks, say an oil shock.
In this regard, central banks, as the guardians of the financial system, are called upon by society to undertake the task of analyzing and examining macro-prudential policies and regulations. In line with this trend, the Bank of Korea was given responsibility for financial stability under revised legislation this August, so that it is now better placed to exercise its financial stability function more actively.