And so it was widely appreciated by society that the Bundesbank interpreted its mandate as meaning that it should maintain price stability. The oil crises of the 1970s and 80s were further events that shaped central banking. It was during this time that the merits of politically independent central banks like the Bundesbank and the Swiss National Bank came into sharp focus.
The value of household assets has increased by 38 percent since early 2009, while household liabilities have fallen slightly over the same time period. While the process of balance sheet repair may not yet be complete, substantial progress clearly has been made. Recent advances in consumer sentiment and financial wherewithal have not invigorated the housing market, however.