Morning Must-Read: Ben Bernanke: Should monetary policy take into account risks to financial stability?

…However, as a means of addressing those threats, monetary policy is far from ideal…. It is a blunt tool… can only do so much… [if] diverted to the task of reducing risks to financial stability… not available to help the Fed attain… full employment and price stability…. It’s better to rely on targeted measures to promote financial stability, such as financial regulation and supervision, rather than on monetary policy…