First, we need a new culture that puts more emphasis on the role of stocks in creating potential macro-risks – in particular for monetary authorities, risks for price stability in the medium-run. The new culture would also focus on decision-making under uncertainty.
Second, central banks either need a shift in their monetary policy framework to deal explicitly with financial imbalances, or interpret their current framework in a way that gives them more freedom in pro-actively trying to avoid that financial imbalances burst, with major macroeconomic consequences.