Financial instability, as a negative factor in the implementation of inflation targeting strategy

Abstract

The author examines the relationship of monetary policy and financial stability policy in inflation-targeting countries. Particular attention is paid to new directions in determining the form offinancial stability policy, which should be used in order to prevent the emergence offinancial imbalances in the country. Moreover, the paper states the main arguments for the need to consider financial stability as a prerequisite for the successful implementation of inflation targeting strategy.

Keywords

• «leaning against the wind»
• inflation targeting
• financial stability
• financial disbalance
• financial bubble
• macroprudential policy
• «leaning against the wind»