This separation is also consistent with the “principle of effective market classification”, according to which policies should be linked to those objectives on which they have the strongest impact.32 Whether the two different policy functions give rise to friction depends on the degree of complementarity of the respective policy objectives. Most of the time, there is no trade-off between price stability and financial stability.
21 - April 2017 - The impact of financial reforms  109  Central clearing: reaping the benefits, controlling the risks Benoit Cœuré  Financial Stability Board – FSB (2012) Overview of progress in the implementation of the G20 recommendations for strengthening financial stability. Report of the Financial Stability Board to G20 Leaders, 19 June.