In the decades before the financial crisis the scope of central banks’ policy remit was narrowing – now it is enlarging again in ways that economic theorists of old could never imagine. This is especially true in emerging markets, where central banks are adopting something of a social and economic inclusion role.
In the advent of the monetarist fashion in the 1980s, many central banks focused on price stability and not much else. The fashionable view was that asset price bubbles should be allowed to collapse of their accord without central bank interference.
