Issing on monetary and financial stability

In a speech on 'Monetary and financial stability: Is there a trade-off?' Otmar Issing of the European Central Bank said the question whether there is a trade-off between monetary and financial stability has been one of the most interesting areas of research for central banking for many years. He warned central banks may have to accept inflation rates that exceed their own limits during times of "strain" in financial markets. The stress "might be such that deviations from the desired

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