Risks associated with the pre-crisis consensus view  Let me mention two main risks associated with the pre-crisis consensus view. 2.1  Delayed removal of policy accommodation  The first risk is that the implementation of such an approach might favour a policy of “tolerance” and “benign neglect” during the boom phase and a policy of excessive accommodation during the bust phase.
When this is compounded with the central bank’s legitimate fear that a premature removal of policy accommodation may weigh negatively on the (initially still fragile) recovery, exceptional accommodation in terms of low levels of policy rates may also become exceptional accommodation in terms of the duration of such a policy.