For it is only when we openly and constructively debate our differences that progress is possible. This episode thus speaks to the strength of the Riksbank as an institution. When it comes to wider implications for monetary policy, it seems to me that the lessons are actually less clear than what immediately meets the eye.
Yes: When it comes to handling financial stability risks, monetary policy is a sledgehammer rather than a scalpel. Macroprudential policy should be the preferred choice of tool, and getting it ready for use has to be a political top priority. However, the effectiveness of many instruments has not been confirmed in practice.