Financial markets play a crucial role in promoting risk-sharing in a monetary union with strict budgetary rules and with conventional monetary policy unable to  22  Assessment Methodologies for Identifying Non-Bank Non-Insurer Global Systemically Important Financial Institutions, FSB-IOSCO Consultative Document, 2015.
Without firm guidance on the strategy and the objective of monetary policy, a central bank risks that temporary adverse price shocks result in a reappraisal of the expected inflation rate by the public.