In my opinion, this simple observation has far-reaching implications for a central bank’s research programme. If a central bank’s research is to develop on well-organised lines, it has to be “ from the top down”, with the objectives as the primary focus.
You all know, that price stability has long been established as the first objective of central banks and therefore price stability has been and will remain the first objective of central bank research. As I see it, financial stability has now become the second top issue for central bank research.