We must also remember that, when monetary policy decisions are implemented, there will inevitably be individuals, households or businesses who perceive they are being hit harder, and some actually will be. Therefore, in pursuing our price stability mandate, we should not shy away from recognising that our measures also have consequences, at business cycle frequencies, on the distribution of incomes and wealth.
This is so both when the threats we face are due to an overheated economy as well as when they stem from unemployment plainly being too high. Indeed, central banks contribute to the achievement of stable financial conditions and act in order to maintain price stability, often in the face of shocks that are as hard to foresee as they are to master.