2 Basic ingredients Turning to the basic ingredients, you won’t be surprised that, as a central banker, my considerations start from monetary policy geared to price stability. The European treaties provide us with an ideal framework for this: the Eurosystem is equipped 1/7  BIS central bankers' speeches  with wide-ranging independence and has a clear mandate with price stability as its primary objective.
Increased globalization has brought to the fore the vulnerability to contagion effects. While it was argued that such risks are the short-term pains needed to reap long term gains (Kaminsky and others, 2008) 3, there is now a wider acceptance that benefits of internationalization are not an unmixed blessing and that there is a nuanced trade off between growth and crisis risk.