For central banks, just as managing the crisis was difficult, managing the recovery is going to be equally, if not more, difficult. One of the most important challenges I see in the days to come is that of exit from accommodative policies adopted during the crisis management phase and to ensure that the financial imbalances which led to crisis do not build up again.
But the policies that are most suited to crisis management are not necessarily the best for crisis resolution6. In recent periods, the extraordinarily easy monetary policies in advanced countries have provided some relief, but, sooner or later, central bank balance sheets will have to be repaired.