The extended period of steady growth and low and stable inflation during the Great Moderation lulled central banks into complacency. They thought they had discovered the holy grail and declared victory.
Only with the benefit of hindsight is it now clear that the  2  BIS central bankers’ speeches  prolonged period of price stability blindsided policy makers to the cancer of financial instability growing in the underbelly. 12. So that much is now clear. Central banks should be mindful of financial stability concerns.