A situation, in which the central bank puts at risk price stability in favour of financial stability, is not conceivable if the central bank is given a clear hierarchical mandate that places price stability before other concerns. Internal procedures can be, and should be, designed in a way that this is efficiently implemented.
I will mention three. First, there is a risk of biased statistical inference. Big data and, in particular, unstructured data collected from social media may reflect only a part of the population. 1  2  3 4  5  See M. Loberto, ‘The rental market in Italian cities’, Banca d’Italia, Temi di Discussione (Working Papers), 1228, 2019.