The balance of views within the central banking community has been shifting in this direction (Carney, 2009; Shirakawa, 2009; Trichet, 2009; Cagliarini et al, 2010; Woodford, 2010 and Fischer, 2011).
It is argued that central banks must improve the underlying analytical framework of their monetary policy taking due cognisance of asset price movements, monetary and credit developments and the build-up of financial imbalances in order to identify potential risks and ensure more informed decision making.