Reconciling price and financial stability
Summary
The severity of the financial crisis has undoubtedly exposed the vulnerability of the financial system. In efforts to address the root cause of the problem, this speech considers whether and how central banks may have contributed to the conditions which led to the crisis. It provides a broad overview of how price and financial stability might be better reconciled, in general, and outlines how the Swiss National Bank (SNB) and other Swiss authorities are striving to achieve this objective.