For monetary policy to be able to concentrate on price stability, it is therefore indispensable that macroprudential policy is equipped with an individual set of instruments. This notwithstanding, monetary and macroprudential policy cannot be seen completely separately from each other due to potential spillovers. Therefore, some coordination between both policy fields is warranted, although without blurring the individual objectives. 3.
How to design macroprudential policy  With this in mind, I would like to turn to the more practical issues associated with the question “how to design macroprudential policy?”. For efficient macroprudential policy, two things are crucial: a thorough analysis of the build-up of systemic risk to be able to issue warnings and recommendations, and the translation of such warnings into policies and action.