Moreover, over the past few months the monetary policy decisions of central banks have been occasionally at the centre of public debate triggered by concerns that interest rate increases might adversely affect economic activity, as well as by more general considerations regarding their policy mandates.
It is said that it is the job of central banks in the economy “to take away the punchbowl just as the party gets going.” Looking at the developments in financial markets over the past two months, it looks like the party in some market segments was a rather exuberant affair, characterised by quite a few excesses!