A central bank cannot directly move beyond these borders since it lacks the necessary instruments and also because it has no intention of doing so. However, real sector performance remains the key focus of a central bank, especially since unhealthy growth in the real sector can disrupt economic stability, which is the focus of a central bank.
Central banks possess comparative advantages of information and action as they combine complementary elements such as oversight of payment systems, their own refinancing operations, their activities in the financial markets and their presence in international committees. In addition, only central banks can perform the vital function of the lender of last resort for the banking sector during financial crises.