And the abundance of published financial stability reports over the recent past is indicating that the respective resources invested by central banks have been increased visibly over the past couple of years. It would have not needed the most recent financial market turbulences that started last summer to drive home that point.
However, the events since last August have made clear for even distant observers that central banks have a natural interest and responsibility to safeguard developments on financial markets. AAA, ABCP, ABS, CDO, CDS, SPV, SIV – until just under a year ago, these abbreviations could only be found in the financial press, if at all.