The credit squeeze has thrown a spotlight on the competence and credibility of central banks, but economists are divided on whether it should change their focus.

Economists Survey

The results in full
Q1: What are the 3 main risks to economic stability in 2008?
Q2: How does the credit squeeze change the job of central banks?
Q3: How deep will the correction be in the housing market?
Q4: How far is it possible to ignore short-term inflationary pressures?
Q5: What needs to be donw with the public finances?
Q6: Are emerging economies the next global bubble?
Q7: To what extent will the US election affect the world economy?
Q8: Where will Northern Rock be this time next year?
2007 survey

Two of the five former monetary policy committee members who answered the question were adamant it simply introduced new factors into the assessment of the economic outlook. Three intimated central banks needed to pay more attention to financial stability issues. The prevailing view among the 48 respondents, however, was that, while central banks’ job remained the same, it had become more difficult.