Financial stability mandate could ‘undermine’ monetary policy – Weidmann
Bundesbank governor says putting financial stability on par with price stability would be a mistake
The governor of the Deutsche Bundesbank has said the suggestion financial stability should be put on par with price stability within a central bank’s mandate is a “perilous proposition”.
Speaking in Frankfurt on August 20, Jens Weidmann said the credibility of monetary policy could be “undermined” if tasked with financial stability.
Central banks should continue to aim for one objective, Wiedmann said. Otherwise they would risk complicating communication with the general public, jeopardising
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