Meaning, are we putting the needs of financial markets – that is, mainly private investors – before the needs of the real economy as a whole (price stability target)? There are no simple answers to these questions.
On the one hand, central banks have to take into account every nuance in the economy, including how financial markets might process implicit and explicit signals from the central bank. On the other hand, central banks should not solely rely on how the markets may or may not react.