Each could operate independently, focusing only on its own objective. 9 The resulting combination of policies – a Nash equilibrium – could both achieve the inflation target and ensure an acceptable degree of financial stability (Chart 3).
A key issue will be to focus on the achievement of intended outcomes but also analyse potential (positive or negative) unintended consequences. The FSB, in line with its aim to engage with a broad range of stakeholders, has invited feedback on this project, including supporting evidence of reform effects, by June 21, 2019.