Ladies and gentlemen As always, the world is not just black or white: rejecting financial stability as an additional objective for monetary policymakers alongside the objective of price stability does not mean that central banks should shun responsibility for ensuring financial stability. After all, central banks generally possess a high level of expertise in analysing risks to financial stability.
However, the method of choice for combatting these risks is not monetary policy, it is macroprudential policy. Macroprudential instruments can be employed in a much more targeted way than monetary policy.