This is true in absolutely all circumstances, and particularly in times of crisis”.16 Ultimately, the aim of central bank policy and its main contribution to increasing social wellbeing remains, as before the crisis, to maintain macroeconomic stability.
However, since the crisis it has been increasingly acknowledged that consumer price stability is not, on its own, a sufficient condition for overall macroeconomic stability, as was probably assumed during the Great Moderation. Traditional policy tools need to be augmented with macro-prudential instruments targeting financial stability goals.