Now, it is decisive that the rules are applied rigorously. In addition, placing monetary union on a sounder footing is closely linked to regulatory reforms in the financial system. But I will leave these important issues for the discussion, rather than going into them right now. Admittedly, the crisis has opened our eyes to structural flaws at many levels.
The bigger threat to price stability over the long run does not lie in relative price changes, but rather in a loss of independence by central banks following a situation in which they have they ventured far into a political agenda with distributional consequences. Financial stability Let me now look at the channels through which climate change can impair financial stability.