While it is certainly true that financial stability does not necessarily imply price stability and vice versa, the recent crisis has made it clear that large-scale financial instabilities can significantly affect the development of prices in the economy. Therefore, a natural question arises as to whether monetary policy and macro-prudential supervision and regulation are related and interlinked with each other.
I see monetary policy and macro-prudential supervision and regulation as being linked in two ways. First, monetary policy can have an impact on financial market developments and thus can affect the stability of financial markets.