Such was the case when rising oil prices pushed headline inflation noticeably above 2 percent for several years prior to the financial crisis. Similarly, the Committee substantially discounted the reductions in inflation that occurred from 2014 through 2016 as a result of the decline in oil prices and the effects of the dollar’s appreciation on import prices.
As recently noted by ECB’s President, Mario Draghi, “[i]t was only after the crisis that there was widespread recognition of the importance of the macro dimension of financial stability.”1 Central Banks play a crucial role in ensuring economic and financial stability.