- Monetary policy cannot serve both economic stability and financial stability at the same time.
- The use of monetary policy to achieve financial stability is a blunt instrument, producing widespread collateral damage in the economy. Monetary policy should be aimed at economic stability.
- In order to achieve financial stability, new instruments are needed, here we discuss the advantages, risks, and drawbacks of these macro-prudential tools.
Serving 2 Masters At A Time?
February 14th, 2015 · No Comments
Tags: Monetary policy