Non-events they may be, but they have changed our thinking on central bank mandates in a powerful way. How influential that thinking will be on the way forward will depend on how firmly central banks embrace the new trilemma. References Chancellor, Edward (2011): “Germany’s Eurozone trilemma”, Financial Times, November 6, 2011.
The financial crisis and monetary policy measures We can distinguish two major episodes in the current crisis, first the sub-prime crisis, magnified by the collapse of Lehman Brothers, and, second, the sovereign debt crisis in whose thrall we still find ourselves. Mispricing of risk The two episodes share some common causes.