At this stage, their critical monitors are being focused on: • • • • • • •  the health and soundness of the domestic financial sector; the openness and efficiency of the money and capital markets, and the market in foreign exchange; the transparency, both of policies and of macroeconomic data made available by the authorities; the quality of governance in both the public and the private sectors of the economy; the macroeconomic policies followed in the country by the monetary and fiscal authorities, and in respect of labour and commodity markets; the overall balance of payments situation, including developments in the current and in the capital accounts; and the total outstanding foreign liabilities, with special reference to the vulnerability of the country for sudden outflows of capital.
It is essential, and the ECB Governing Council is united on this front, that involving central banks in financial stability policy does not alter the primary objective of monetary policy – ensuring price stability. Otherwise the credibility of monetary policy could be endangered. And money is nothing other than trust that has taken on solid form.