Central Banking (CB): What has the crisis taught us about central banks and central bankers?
Stephen Cecchetti (SC): Oh my! The first lesson is that central banks need support from other places in order to get the results we want. What happened in the crisis was that the system turned out not to be resilient to innovations in certain places, incentive problems in other places and policy errors in a third set of places. As a consequence, it didn't matter much what central bankers did or not.