Caruana tells central banks to focus more on financial stability

Jaime Caruana, general manager of the Bank for International Settlements (BIS), today argued that central banks need to better appreciate their role in influencing the behaviour of credit and asset prices.

Caruana, speaking at an OMFIF event in London, stressed that the recent financial crisis has "clearly shown" financial stability is "essential for lasting price stability".

This, he said, raises the question of how central banks can shift from their traditional, purely macroeconomic