Prof. Friedman articulated that if these policy mix sow the seeds of the crisis, there is a need to change the policy mix. BIS central bankers’ speeches  1  Professor Eswar Prasad argued that central banks need not be constrained by the orthodox one instrument one target framework but need to explicitly address the financial stability concerns.
Monetary dominance implies that in carrying out its mandate a central bank may not make itself dependent on the specific decisions of other institutions. A fundamental assumption underlying European monetary union is therefore that different institutions must act independently within their mandates.