Let me try and flag them. Financial stability – why is it important? 7. Given the enormity of the crisis the world has just gone through, to ask why financial stability is important will sound inane, perhaps even outlandish. But that perception comes from the benefit of hindsight. Remember financial stability was not on anyone’s radar screen during the period of the Great Moderation.
So, let me address the question of why financial stability is important. 8. That financial stability is important for the macroeconomy is perhaps obvious.