The Central Bank Policy between the Price Stability Objective and Promoting Financial Stability

Abstract The paper aims to emphasize the role of the monetary policy and the central bank's position concerning the financial stability in the new context created by the global financial crisis, and given that it pursues the price stability, as the primary objective. The analysis highlights the need to review the position of the central bank in order to promote a more proactive stance to deal with financial stability, beyond the traditional framework of regulation and supervision, but there is a risk of emerging conflicts derived from the pursuance of the primary objective (the price stability) while maintaining financial stability.