Rather than mark a new rise of central banks, last week is more likely to be a temporary aberration. Until higher and more inclusive growth and genuine financial stability become the norm around the world, rather than the rare exception, these crucial institutions will continue to face enormous political pressures. And since they alone cannot deliver the needed economic and financial improvements, their effectiveness and reputation will remain at the mercy of the actions and whims of others.
Mohamed A. El-Erian is a Bloomberg Opinion columnist. He is the chief economic adviser at Allianz SE, the parent company of Pimco, where he served as CEO and co-CIO. His books include “The Only Game in Town” and “When Markets Collide.”