* * * A decade has passed since the beginnings of a global financial crisis that resulted in the most severe financial panic and largest contraction in economic activity in the United States since the Great Depression. Already, for some, memories of this experience may be fading—memories of just how costly the financial crisis was and of why certain steps were taken in response.
Action might be required, hypothetically speaking, should interest rates rise to unacceptably high levels in response to the large-scale issue of government bonds, or if there were fears of bottlenecks in the flow of funds, or financial system instability in the process of structural adjustment.