I will argue that, whilst the central bank must always be ready to take aggressive action if needed, a well-designed institutional framework, which undisputedly assigns the central bank the primary objective of price stability, and the adoption of a clear monetary policy strategy, which quantitatively defines price stability and does not pretend to fine-tune directly the business cycle, can make the latter type of policy activism unnecessary in many circumstances.
In this regard, we have seen very favourable spillovers into credit conditions for small and medium-sized enterprises. As more corporations seek market-based financing, given the attractive funding conditions prevailing in the capital markets, banks are left with greater capacity to provide loans to smaller companies, which are more constrained in terms of access to funding sources.