First, in connection with the leitmotif of today's conference, we should not restrict central banks' stabilization policy to a narrow domain of macroeconomic management. There could be circumstances where a central bank needs to play a critical role in safeguarding the stability of the financial system.
In addition, the effectiveness of monetary policy hinges crucially on the proper functioning of financial markets and the financial system. This is because monetary policy is implemented through central banks' lending, deposit-taking, money-market operations, and other activities in financial markets. If financial stability is at risk, central banks' policy would be severely constrained.