Regarding the interaction of monetary policy and 5  financial stability, around the world, albeit under different institutional arrangements, central banks have renewed their critical role in addressing financial stability challenges. The benefits of attaining monetary policy and financial stability goals tend to mutually reinforce each other.
Thus, the instruments to achieve such goals are characterized by a certain degree of interaction, but also by clear differences that must be considered. Along this line, a central bank must take three elements into account: 1. Separability between monetary policy and financial stability goals.