Importantly, the recent quantitative model developed by Philippe Martin and Thomas Philippon demonstrates the complementary roles of macroprudential and fiscal policies in limiting macro-financial volatility in the euro area, with joint deployment more effective than if either instrument were used on its own (Martin and Philippon 2016).
In relation to the inter-relation between financial stability risks and low policy rates, it is important to appreciate that the more quickly inflation approaches the target level, the more quickly will 3/5  BIS central bankers' speeches  policy rates re-normalise, allaying fears of a “low for long” stagnation scenario vis-à-vis nominal interest rates.