While mandates continue to be geared towards domestic objectives, one’s actions can spill over to other economies, which in turn can generate spillbacks for the own economy or financial system. As a minimum, this calls for an enhanced exchange of information about what is going on in the respective jurisdictions, if not for more active policy cooperation.
The Bank of International Settlements in Basel plays already an important role in this respect and this is likely to become more pronounced in the future. Second, we see worldwide that central banks have come under increased scrutiny since the crisis.