Abstract:
The traditional "Jackson Hole Consensus" suggests that monetary policy only
responds to financial stability factors in special circumstances. However, some scholars argue that monetary policy indeed has an impact on financial stability and should be given special attention.
The primary goal of the "Jackson Hole Consensus" monetary policy framework is to ensure
economic and financial stability through stable inflation. In practice, financial system stability,
financial innovation, and zero moral hazard have formed the new "impossible trinity" of financial
stability. The "asymmetric intervention in asset price volatility" monetary policy control model
may develop into a significant trigger for severe financial imbalances. Subsequent research needs
to focus on: 1) whether monetary policy considers the constraints of financial stability, 2) the
changing mechanisms through which monetary policy influences financial stability, 3) the
asymmetric effects of monetary policy on financial stability, and 4) policy coordination in
maintaining financial stability.
