This second stage complicates the analytical setting by adding economic disturbances and imperfect knowledge. Shocks can produce occasional departures from price stability. How should a central bank view past slippages? Should the central bank always look forward and never pause to reflect on its past record? 1.
BIS central bankers’ speeches  3  In a testimony to the US Congress by the then Chairman of the Federal Reserve Board in 2002, Alan Greenspan stated that lawyers, internal and external auditors, corporate boards and rating agencies often fail to detect and blow the whistle on those who breach the level of trust essential to well-functioning financial markets.