There was a widespread feeling that this joint family approach, which sought to enhance efficiency through co-ordinated approach, actually led to loss of transparency, of accountability and of incentive to measure or seek efficiency. BIS Review 27/2002  1  The policies pursued did have many benefits, although the issue of the higher costs incurred to realize the laudable objectives remains.
Interactions between monetary and macroprudential policy become even more pronounced in a monetary union where monetary policy, by definition, will be focusing on area-wide economic and financial conditions. In fact, macroprudential policy targeting imbalances building up at national level within the monetary union can help to achieve better policy outcomes in terms of price and financial stability. 1.