They graze alongside each other, of course, but they actually feed from different grass heights, with zebra preferring taller grass and wildebeest focusing on short grass. Researchers have attributed this selection to anatomic differences in mouth dimensions.9 In a similar vein, macroprudential instruments can be used in a far more targeted way than monetary policy.
They cut the grass at a different level, so to speak. This is of particular use with respect to the euro area. Macroprudential tools can be employed at the level of member countries to combat problematic developments in national financial systems – developments that cannot be counteracted by the single monetary policy.