Hellwig warns against expanding financial stability mandate too far
Considers balance between macroeconomic and financial stability objectives
Without limitations on the financial stability mandate of central banks, there is a "serious risk" of monetary policy succumbing to financial dominance, according to Martin Hellwig, director of the Max Planck Institute for Research on Collective Goods.
Hellwig presented a paper on the relationship between financial stability and monetary policy at the Annual Financial Markets Conference, sponsored by the Federal Reserve Bank of Atlanta's Center for Financial Innovation and Stability.
In the
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