Finally, I will consider current challenges for the euro area financial system and draw some lessons for the future. In conclusion, I will argue that recent history has shown that, even in high-inflation periods, separation between monetary and financial stability considerations can be ensured if financial disturbances are caused by market dysfunction and liquidity issues rather than solvency concerns.
A fundamentally sound, well-regulated financial sector protects central banks from any form of financial dominance, allowing them to focus on their primary mandate of price stability.