When the history of the Great Recession is written, one theme will be paramount: It was the world's central bankers, not its elected politicians, who had to deal with the crisis-a task for which they weren't adequately equipped (and still aren't). Some rose to the challenge; others didn't. The central banks that promptly took an expansive view of their powers and responsibilities (the U.S. Federal Reserve and the Bank of England) got much better results than those that delayed too long (the Bank of Japan) or refuse even now to step up (the European Central Bank). The most effective stretched the limits of their mandate. Governments should never have made that necessary.
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