That said, recent ECB research on this issue has also shown that the euro does not display one of the characteristics typically associated with vehicle currencies – namely their use in the trade of commodities. An international currency is not only used for trade purposes, but also for financing and investment purposes.
The upshot is that the relationship between monetary policy and financial stability is being re-evaluated. As this occurs, we seem to be moving on from the earlier, unhelpful, framing of this issue in terms of the question as to whether or not monetary policy should “prick bubbles” and whether bubbles can even be identified.