7 Over longer horizons there is no evident trade-off between price stability and financial stability objectives – indeed, there are probably synergies. We need to lengthen the horizon of monetary policy by taking into account the interactions and feedbacks between the real and the financial sectors and the non-linearities that emerge especially during crises.
They could push the IMF into the role of a case-by case risk assessor comparable to an insurance company assessing applications, which may be viewed as being incompatible with the IMF’s assignment of offering undiscriminating support to its global membership on a revolving basis at intentionally not fully risk-equivalent terms.