There are basically two general reasons that may lead to the decision to centralize supervisory powers: •  the possibility of obtaining an overall view, accompanied by economies of scale and hence lower costs for the intermediaries subject to supervision;  •  the changes in the operational and geographical boundaries between intermediaries, markets and financial instruments, owing, among other things, to the emergence of “large and complex financial institutions”.
So, inflation was not a problem; asset prices were the problem. What was the solution? Even more money. So, it is like an alcoholic. "What is your problem?" "I am drinking too much." "Okay. To stabilize you, in the meantime, I will give you alcohol so you can function."