The Relationship between Monetary Policy and Financial Stability The staff presented several briefings on a special topic, the relationship between monetary policy and financial stability. The presentations began with an overview of the possible linkages among monetary policy, macroprudential tools, and financial stability, drawing on both academic research and experience with such tools in various countries. The staff then reviewed empirical literature on the linkages between the stance of monetary policy and financial stability. Lastly, the staff presented illustrative simulation results from a specific ... (full story)