I suspect that this uncertainty is itself an impediment to stronger growth, since it makes financial planning more difficult. There are some features of the pre-crisis credit world with little to be said for them, whose apparent demise we should welcome.
The ultimate success of a central bank in maintaining price stability depends on its credibility. Credibility anchors inflation expectations in line with the definition of price stability adopted by the central bank. Well-anchored inflation expectations in turn align the choices relevant for wage and price setting. A key prerequisite for a credible monetary policy is the independence of the central bank.