A working paper published by the Banque de France on August 3 analyses a possible conflict in the objectives of macro-prudential and monetary policy, but finds there is little evidence that one undermines the other.

The authors, Denis Beau, Laurent Clerc and Benoit Mojon, study data from the eurozone countries over the period 1985–2010, assessing whether shocks have differing impacts on the two policy areas. The paper finds that shocks most relevant to macro-prudential policy, in particular to