However, as a central lesson from the crisis, monetary policy has to take a closer look at the possible build-up of financial imbalances – because these have implications for price stability. In the case of the Eurosystem, this implies that monetary analysis, which already focuses on longer-term risks for price stability stemming from increasing money supply, will gain in importance.
Maximizing expanded toolkit: Adjusting the policy rate and managing the exchange rate Now, what did we [at the central bank] do? It is quite simple: We raised rates. The other one is, we are also an exchange rate-managing central bank. If you look at our record, we are able to build our foreign exchange (forex) reserves when the peso is strong.