And that includes macroprudential policy. Because monetary policy effectiveness also depends on an increasingly important role of macroprudential policy. The scope for interaction between these policies is large, as they share common transmission mechanisms and can affect each other's objectives. The ECB's review of the monetary policy strategy recognized that financial stability is a precondition for price stability.
Keeping policy current as risks to the system evolve—leverage and liquidity are important usual suspects, but the trickiest part may be understanding the risks that stem from interconnectedness in an ecosystem that is changing rapidly. 3.