In this regard, I am concerned that along with insulating the setting of monetary policy from the political business cycle through central bank independence came a belief that monetary policy was the only game in town for demand management. This belief was reinforced by the success of the macroeconomic management after the 1990s recessions up until 2007.
So the taxpayers will no longer have to bear the costs of resolving a failing credit institution. The BRRD is the most significant regulatory initiative in the financial area in Europe in recent times. The days when banks were rescued by the central government are over.