Monetary policy and financial stability intrinsically linked: ECB’s Praet


Peter Praet, a member of the European Central Bank's executive board, on Thursday said monetary policy and financial stability policy were intrinsically linked to each other, and that central banks should actively seek to lean against financial imbalances.

At the 14th Annual Internal Banking Conference in Chicago, Illinois, Praet said pre-crisis, the consensus view was that central banks should only respond to asset prices and financial imbalances to the extent that they affect the shorter-term

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