Financial Stability and Responsive Monetary Policy: Resolving a Dynamic Incompatibility. Benjamin Friedman, February 1, 2012, Paper. “In the wake of the 2007-9 financial crisis a narrative has emerged, especially for the United States, that poses a new challenge to the joint conduct of monetary policy and financial regulation. This narrative places much of the blame for the crisis, and therefore the economic costs that the aftermath of the crisis inflicted (and continues to inflict) not just in the U.S. but elsewhere around the world as well, on the easy monetary policy that the U.S. Federal Reserve System pursued during the early years of that decade…” Link