Independence is therefore a further condition for ensuring that a central bank retains its freedom of action at all times. Independence is more than an abstract construct. It gives the central bank the freedom to act swiftly, resolutely and credibly, if needed. What independence also means, however, is the responsibility to use this freedom strictly within the meaning of the statutory mandate, no matter what the prevailing political climate may be. Independence cannot be taken for granted, it is a privilege. It was granted to us under the Constitution in order that we could achieve the goal of price stability in the long term. As a counterweight to its independence, the SNB has a duty of accountability and information with respect to parliament and the public. The SNB is thus  4  BIS central bankers’ speeches  firmly anchored in our constitutional democracy. In a free society, an authority with a complete free hand would be a foreign body. Favourable environment created by Confederation and cantons Yet independence must also be lived. The SNB may not accept instructions from political authorities; neither can it allow itself to be put under pressure by public opinion. It must conduct a monetary policy that serves the interests of the country as a whole, to the best of its ability, and in accordance with its mandate. It is only natural that our monetary policy cannot please everyone at all times. However, an independent central bank must not be put off by this.
Yet the concerns which used to be expressed about preventive approaches are not entirely without foundation. It is not usually possible for central banks to fully measure the build-up of excesses on financial and asset markets in real time, to intervene at exactly the right time and thus put a stop to dangerous bubble formations at precisely the right moment. However, the current macroprudential toolkit neither claims nor intends to do this. Just as monetary policy is unsuited to fine-tuning the economy, macroprudential measures are also little suited  6  BIS central bankers’ speeches  to fine-tuning asset and credit markets. Instead, what is involved are relatively limited interventions in order to prevent foreseeable larger imbalances that might possibly endanger financial stability at a later stage. While there is broad international consensus that the new instruments make sense, there is a wide difference of opinion about how the institutions that use them should be organised. In some cases, new bodies have been created to examine the use of these instruments, while in other cases responsibility has been placed fully in the hands of the central bank. A number of countries have gone even further by handing over the traditional area of individual banking supervision to central banks as well. Similarly, it is equally impossible to use a one-size-fitsall approach for all the measures and instruments introduced in different countries.