An argument has been raised that central banks should consider financial vulnerability when operating monetary policy.

Tobias Adrian, Financial Counsellor and Director of the Monetary and Capital Markets Department at the International Monetary Fund (IMF), made this remark during a presentation of his paper titled 'Financial Vulnerability and Monetary Policy' at the '2026 BOK International Conference' held on the 1st at the Bank of Korea's annex in Jung-gu, Seoul. This event is the first public academic event hosted by the Bank of Korea since Governor Shin Hyun-song took office.

Director Adrian pointed out, "While accommodative financial conditions improve production and the economy in the short term, financial institutions' investment in risky assets and the expansion of leverage occur simultaneously, which can increase the possibility of a sharp economic downturn in the future." He emphasized, "If central banks reflect financial vulnerability in their policy decision-making process, they can mitigate economic volatility and enhance the overall welfare of the economy." This view differentiates itself from the existing monetary policy approach, which has traditionally focused on price and economic stability while leaving financial stability to macroprudential policies.

He added, "Even if financial stability is not a direct goal of central banks, financial vulnerability must be considered alongside monetary policy operations to reduce the medium- to long-term volatility of prices and the output gap."

In the second session, Markus Brunnermeier, a professor at Princeton University in the United States, presented on the topic of the 'Trilemma of Payments, Credit, and Digital Currency.' He analyzed, "Efficient payments, expanded credit supply, and privacy protection—goals pursued by digital currencies—are conflicting objectives," noting, "It is difficult to achieve all three simultaneously." Professor Brunnermeier stated, "These trade-offs must be sufficiently reflected in the design of central bank digital currencies (CBDCs) and public digital payment systems, as well as in the process of regulating private payment services."

Michael Weber, a professor at Purdue University in the United States, presented the results of a survey of about 5,000 American consumers regarding their political perceptions of the Fed. According to the survey, even if the Fed emphasizes its independence, the credibility and effectiveness of monetary policy are weakened if the public suspects political bias. Professor Weber suggested, "There is a need for a communication strategy that more actively explains that the Fed is a non-partisan institution and spreads the perception that it does not represent any specific group."