For example, when I say BLUE. What comes to your mind? I debated whether I should use words or the Rorschach Test of inkblots. In the end, I concluded “words” would be easier for a crowd like this. It should be easier to find some kind of consensus in a room full of traders than it would among economists. [Two-handed economist.]
But in the most industrialized countries, where capital markets are deep and highly integrated into the banking system, financial stability was traditionally regarded more as an instrument than as an objective in itself. However, we can now see the fiscal, monetary and financial instruments working “side by side” towards a common goal.