Finally, I will outline that, in addition to this, the European sovereign debt crisis poses a much more fundamental question: How can central banks fulfil their mandate if risks to macroeconomic and financial stability emanate from unsound public finances and structural economic weaknesses, yet policymakers do not succeed in putting these deficiencies right? 2.
Interrelations between financial stability and monetary policy  The question as to what extent monetary policy can contribute to financial stability is certainly not new. However, the answer had to be and has been adjusted in the light of experiences throughout the recent crisis.