Papademos on price stability & financial stability

In the speech 'Price stability, financial stability and efficiency, and monetary policy' given on 7 July Lucas Papademos of the ECB said transparency in monetary policy is important for financial stability and financial efficiency.

A monetary policy geared towards price stability contributes to financial stability and efficiency, because it eliminates market distortions and uncertainties arising from inflation as well as anchoring inflation expectations, Papademos said at a conference on monetary

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