Thus, if monetary policy has been tasked with 2/6  BIS central bankers' speeches  aiming for both price stability and financial stability, a time-inconsistency problem can arise.
As Kenichi Ueda and Fabían Valencia have highlighted, such a central bank may have an incentive to deviate from the socially optimal inflation ex post.7  3 The role of macroprudential policy and monetary analysis Taking on financial stability as an additional objective for monetary policy would likely do more harm than good.