This marks a paradigm shift in economic policies in Europe. The commitment to price stability and sound public finances is the best contribution monetary and fiscal policies in the euro area can make to financial stability. There is no trade-off between price stability and financial stability and there is also no trade-off between sound public finances and financial stability.
Among other things, this motivates our advocacy of an aggregation alternative, and the use of an alternative valuation method that derives from U.S. GAAP, in the ICS.