However, central banks in many advanced economies did use such tools and, in the aftermath of the crisis, questions have been raised about the tools’ effectiveness, their impact on financial vulnerabilities and their possible implications for central-bank independence. xvii Such renewals are conducted every five years.
The last one was in 2016. xviii For example, if a shock were to occur that required a substantial degree of monetary stimulus for a prolonged period, strong financial regulation and supervision and effective macroprudential policy would be needed to mitigate any resulting financial vulnerabilities and preserve financial stability.