“Central banks certainly did not ignore issues of financial stability in the decades before the recent crisis, but financial stability policy was often viewed as the junior partner to monetary policy,” he [Fed Chairman Ben Bernanke] said. “One of the most important legacies of the crisis will be the restoration of financial stability policy to co-equal status with monetary policy.”
via Bernanke Hangs Tough on Financial Reform.
The problem with having two equal objectives is, when they conflict, which do you choose?
Where in “financial stability and monetary policy” does Bernanke return trillions “loaned” to both U.S. and E.U. banks back to our economy?