Potential candidates are at least market prices, credit-to-GDP ratios, and changes in banking sector liabilities as emphasized by professor Shin of Princeton University.14 Finally, structural reforms of banks are already taking shape in some jurisdictions, such as the USA, the UK.
Given the strong US commitment to controlling inflation, in the end there may be little difference between the way monetary policy already is practiced in the United States and the way it is practiced under the flexible, forward-looking inflation targeting regimes followed by many countries.