Is Prudential Tightening Needed?

Some countries have been tightening Prudential Policy to tackle financial expansion seen during the post-pandemic recovery. I think it's very important and this is a key message of the special feature that this be done because it relieves pressure on monetary policy. This is what is typically called financial dominance as if you have strains in the financial system then the central bank would have to deal with competing objectives. Not that this cannot be done but clearly is more challenging than being focused very much on the task at hand, which is that of bringing inflation down.