Sentences with phrase «stability risks constrain»

Even in extreme conditions, when financial stability risks constrain monetary policy from achieving the inflation target over a reasonable time frame, a central bank would want to ensure that all macroprudential options were exhausted before trying to address those risks with monetary policy.

Not exact matches

Calomiris proposes (1) internal governance reforms that would decentralize power within the Fed and promote diversity of thinking; (2) policy process reforms that would narrow the Fed's primary mandate to price stability and require the Fed to adopt and disclose a systematic approach to monetary policy; and (3) other reforms that would constrain the Fed's asset holdings and activities so as to avoid actions that conflict with its monetary policy mission and that risk undermining its independence.