If the same instrument is used for multiple objectives, conflicts could occur and trade-offs could be required. According to this view, interest rate policy should remain a monetary policy tool and be the main instrument to control inflation. Other policies, which could be well targeted, would need to be introduced in order to deal with financial stability risks.
This suggests a need for a different committee, separate from the monetary policy committee. Although it does not necessarily follow that such a committee should be located within the central bank, it is generally the model that is followed. Sweden is a notable exception, where the responsibility for financial stability lies outside the central bank.