BIS central bankers’ speeches  5  extent that not doing so would result in a worse outcome for current and future output and inflation. 15 There are some calculations – for example, by Lars Svensson – that suggest it would hardly ever make sense to deploy monetary policy to deal with potential financial instability.
The contention that macroprudential measures would be a better approach is persuasive, except when there are no relevant macroprudential measures available. I believe we need more research into the question.