Moreover, the success in stabilising goods and services prices may not preclude inflation in asset prices, causing unsustainable speculation leading to asset booms. Thus, apart from price stability, the central banks would have to take into account asset prices and focus on financial stability as an explicit objective of policy.
While there is more of an agreement to recognise financial stability as an objective, there is less of an agreement about the instrumentalities for achieving this objective. There is a broader acceptance of macroprudential tools for asset prices. It is, however, not apparent at this stage as to what extent policy interest rates could be used to address asset price inflation.