French central bank chief Francois Villeroy de Galhau on Wednesday stated that the European central bank should place more emphasis on its secondary mandate which covers the financial stability and economic purpose of the broader bloc.
The central objective of the central bank is not only to meet inflation targets but also to have the responsibility to support the more integrated European Union (EU) economic policy.
Villeroy added, improving the details in the second term by using variables that cover a wider range of assets including financial institution assets and nominal GDP as this can help the ECB achieve its set goals.
For almost a decade, the ECB has recorded inflation rates below target and this has led to the ECB being accused of providing so much stimulus that it affects financial stability and not only that it could also lead to a financial crisis in the future.
At the same time, Villeroy argues that the ECB's goal is almost identical to the Fed's recently announced strategy.
