Monetary policy and financial stability

Among many other issues, the global financial crisis brought to the fore the question of how monetary policy and financial stability interact . in both a positive and a normative way. Understanding this relationship and its implications for monetary policy is an ongoing process, with many research questions and their policy implications still remaining open. To arrive at a first conclusion, it helps to recall the pre-crisis consensus and how the financial crisis challenged this consensus, before elaborating on what elements a reassessment of the role of financial stability for monetary policy could comprise.