In the Economic and Monetary Union (EMU), both fiscal and macroprudential policy can be targeted at the country, sector or industry level. They can therefore account for heterogeneity within EMU by alleviating the occasional one-size-fits-all problem. Thus, both fiscal and macroprudential policy can support monetary policy in its aim to achieve price stability.
In the same way, successful monetary policy supports economic stabilisation and financial stability. All three policies have the potential to be mutually complementary in their respective fields of responsibility. The recent pandemic crisis and the current challenges of soaring energy and commodity prices coupled with high overall inflation have underlined the case for these policy complementarities.