The improvement of financial markets and strengthening of their functions are also important tasks for a central bank. Indeed, financial markets are where a central bank conducts its monetary policy operations and whether they function properly is extremely important in terms of the smooth transmission of policy effects.
Looking back at the history of such episodes, of which there have been a few over the past century or more, if we come through this terms of trade event with neither a major outbreak of inflation in the upswing nor a major crash in the downswing, even if we have a period of sub-average growth in the process, we will have done far, far better than in any previous event of this kind, let alone one of this magnitude.