This can be done, for example, by flexibly adjusting the medium-term horizon over which inflation is brought back to target, by prioritising tools with lower side effects, and by designing monetary policy tools in a way that mitigates financial stability risks. See Schnabel, I. (2021), “Monetary policy and financial stability”, speech at the fifth annual conference of the European Systemic Risk Board, 8 December.
12. Schnabel, I. (2020), “The ECB’s monetary policy during the coronavirus crisis – necessary, suitable and proportionate”, speech at the Petersberger Sommerdialog, 27 June. 13. ECB (2020), ECB announces € billion Pandemic Emergency Purchase Programme (PEPP), press release, 18 March. 14. Schnabel, I.