Interaction between macroprudential and monetary policies  The objectives of macroprudential policies should be kept separate from those of more traditional policies. There is consensus that there is no need to change central banks’ current mandate of preserving price stability over the medium term. The benefits of a sound monetary framework have become more – not less – evident during the crisis.
Had central banks failed to control inflation, and inflation expectations, monetary policy would have had much less room for manoeuvre. However, the increasing emphasis on financial stability and macroprudential policies poses challenges to monetary policy. Central banks should not have to stand by idly until a crash occurs before intervening.