Praet warns against creating ‘trade-off’ between monetary and financial stability
Senior ECB economist defends eurozone monetary policy
Central banks should avoid creating a trade-off between financial and price stability, the de facto chief economist at the European Central Bank (ECB) said in a speech today (August 31).
Instead, they should "build on our improved monetary policy and regulatory frameworks and focus on their steadfast implementation", Peter Praet told an audience in Beijing.
Establishing a "lasting trade-off between financial stability and price stability in central banks' objective functions" would cause policy
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