4  Borio, Claudio & Zhu, Haibin (2012), “Capital regulation, risk-taking and monetary policy: A missing link in the transmission mechanism?”, Journal of Financial Stability, Elsevier, Vol 8(4), pages 236–251. 4  BIS central bankers’ speeches  Of course, whenever financial stability risks are looming, this represents a challenge, above all, to macroprudential policy.
However, a monetary policy which is intended to ensure longer-term price stability cannot completely ignore these risks, for generally financial stability risks ultimately also threaten price stability – as was clearly shown by the financial crisis.