In general, due recognition is not always accorded to the role that price stability plays in securing sustainable economic activity. In our modern world where remote controls and microwave ovens are the order of the day, not everyone – market participants included – always comprehend or appreciate that monetary policy operates with a relatively long lag.
•  The second concerns the special role of certain asset markets, notably the housing and credit markets, in driving the dynamics of boom-and-bust. •  The third focuses on the role of central bank policies and tasks in containing the risk of financial market imbalances and in mitigating their potential consequences on the financial system and the economy. II.