A framework for financial stability

Central banks and financial stability have been umbilically linked for many years. The Bank of England has played a role in helping ensure financial stability in Britain for much of its 300-year history. And the Federal Reserve in the United States was set up for precisely that purpose.

Recent years have, if anything, seen a deepening of that public policy focus on financial stability among central banks. Financial crises have probably played their part in this evolution. Though Britain has not

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