That outcome can still be regarded as a good thing. And many attribute it, at least in part, to systematic monetary policymaking by central banks. This, however, came at a price.
Monetary expansion drove liquidity levels higher, which in turn facilitated balance sheet expansion and excessive risk-taking.4 In the words of Ben Bernanke, “for the most part, financial stability did not figure prominently in monetary policy discussions during [the Great Moderation].”5 Given this experience, a doctor treating a patient with these symptoms would stop prescribing painkillers.