Having said that, the lessons from the destabilising effect of financial crises cannot be ignored. Without any doubt, the information set under which central banks operate should be enhanced to consider risks to financial stability. Whether, however, central banks should be primarily responsible for ensuring financial stability is less clear - the jury on this question is still out.
Tax cuts, the weakening in economic activity, and the sharp decline in stock prices have reduced individual tax receipts. In addition, taxes on capital gains realizations have become an increasingly important component of corporate receipts in recent years--perhaps as much as one-fourth.