ECB’s Mersch warns against blindly pinning hopes on macro-prudential policy
Yves Mersch says there is much to learn about how macro-prudential tools work
Yves Mersch is a firm proponent of using macro-prudential policies to address financial stability concerns, but today (May 18) warned policy-makers against expecting too much from them.
Mersch, a European Central Bank executive board member, told an audience at the Swedbank Global Outlook Summit in Stockholm he supports "leaning against the wind" when there is no conflict between monetary policy and financial stability.
However, in a more "conflicting environment" it becomes necessary to use
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