Integrating monetary and financial factors into the current New Keynesian paradigm is a fairly recent development in modelling which have only just begun to be incorporated into the present vintage of DSGE models. Progress on these lines would be highly welcome from a policymaker’s point of view.
But, on the basis of the evidence just mentioned, it would be unwise to discard monetary analysis –  4  BIS Review 58/2007  especially now that we find ourselves in a period in which asset prices and liquidity are at a high level and ample on an unprecedented scale worldwide.