It can only provide instruments to respond to these developments to cushion the financial system from potential stresses. It is in this context that the imperative for involvement of central banks becomes evident as otherwise the required synergy between monetary management and macroprudential management will be lost. 42. The real challenge of macroprudential regulation is strong resistance to countercyclical actions during booms.
How much weight does the ECB give to measures of the output gap? Does the ECB it have a target for trend growth in the eurozone? Our monetary policy concept calls on us to counter inflationary risks in the medium term, and be credible in delivering price stability over time.