If the central bank attaches greater weight to the stability of the financial system, it has to continue purchasing government paper as MMLR and expand its balance sheet at the expense of increased uncertainty regarding the future path of prices.
On the other hand, if the central bank chooses to avoid the expansion of its  BIS central bankers’ speeches  3  balance sheet and attaches greater weight to price stability, it may become difficult to restrain the decrease in the liquidity of the market for government paper, as the bank’s purchase of such paper is reduced.