Expansion of monetary policy Monetary policy and financial stability policy I have explained so far how central banks overcame the zero lower bound and their monetary policy made progress. Let me add that the direction of our monetary policy evolution is not necessarily limited to what I have described thus far.
During the global financial crisis, the central banks were confronted with new challenges to maintaining financial stability. First, it was recognized that not only banks but also nonbanks can be sources of systemic disruption, as clearly demonstrated by the collapse of Lehman Brothers.