#2 – Central banks: the trade-off between inflation and financial stability
Mar 04, 2020•8 min
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Episode description
How to strike the right balance between inflation and financial stability has been a source of debate for decades. In this second podcast, William De Vijlder shows how the central banks give priority to inflation targets over financial stability. He uses a few examples to illustrate how central banks will opt to hold a steady course even when confronted with the risk of instability, which is often caused by financial market turmoil.
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