Yet central banks have also contributed to the breakdown of the boundaries by engaging in credit allocations to particular sectors, such as housing, and bailouts to particular firms, such as Bear Sterns. Thus, the fiscal authorities and supposedly independent central banks have acted in ways that undermine central bank independence. I believe this is a dangerous path and one that needs to be changed.
We need to restore the boundaries. Conclusions To summarize, the FOMC has taken significant actions toward greater transparency, most recently with the historic steps adopted in January. These steps in turn help to promote better public understanding of the rationale behind the FOMC’s decisions. First, we released a statement clarifying the long-run goals of monetary policy and our policymaking strategy.