How should monetary policy and macroprudential policy work together in the euro zone?

It is very important to complement monetary policy with macroprudential policy: It averts the need to use interest rates to combat a “local” imbalance (in one sector of the economy, in one class of asset prices or in one type of credit); In a currency area, it makes it possible to differentiate the monetary policy stance between the countries. But the use of macroprudential policy can be complex: It is important to identify the right macroprudential policy that is both effective (this is probably the case with loan-to-value ratios) and does not give rise to distortions between the different banking systems (which may be the case with banks’ regulatory capital); Monetary policy and macroprudential policy must be coordinated (to avoid, for example, a situation where a highly expansionary monetary policy requires a highly restrictive macroprudential policy). This raises the question of who sets the macroprudential policy (if it is the central bank, it may subject it to the monetary policy stance it wants); Macroprudential policy and other economic policies must be coordinated (for example, tax policy depending on whether the macroprudential policy opts to include deductibility of loan interest payments).