But they will not lean against the wind, except in rare circumstances. Instead, they will press for macro prudential policy action. Third, they will conduct monetary operations in much the same as before the crisis. But they have been forced to think in innovative ways about how to interact with money markets and they have adopted a broad range of new instruments.
While some of these innovations will no doubt be discontinued, others will become part of monetary policy makers’ tool box. But much will remain the same.