Such an approach would imply taking greater account of the implicit risks stemming from lively money and credit growth, booming asset markets and decreasing risk premiums, especially with regard to their implications for price stability in the long run. In turn, this could imply extending the time horizon of monetary policy beyond the standard projection horizon of roughly two years.
This is already part of the monetary policy strategy of the ECB’s Governing Council: The separate analysis of money and credit growth provides a very useful toolset for the early detection of rising risk potential in financial markets.