4  BIS central bankers’ speeches  problems, something else besides more vigilant interest rate policy is needed to prevent low and stable interest rates from leading to excesses in banks and financial markets. One development can be the development of macro-prudential instruments which are designed to improve the stability of the financial system as a whole.
The major work in this field was done by the de Larosière group. Otmar Issing was a member of the group. Especially interesting are those macro-prudential instruments which have a time dimension so that they can be adjusted according to the changing situation in the credit markets.