of economics. [ 21 ] see ecb ( 2016 ), “ assessing the impact of housing costs on hicp inflation ”, economic bulletin, issue 8 ; hampl, m. and havnarek, t. ( 2017 ), headline inflation measures shouldn ’ t ignore costs of home ownership ”, voxeu, 12 september. * see sylvain broyer natixis [ 22 ] net support for the euro is calculated as the share of respondents answering “ for ” minus the share of respondents answering “ against ” to the question please tell me whether you are for or against it : a european economic and monetary union with one single currency, the euro. respondents answering “ don't know ” are excluded. net trust in the ecb and other institutions is calculated as the share of respondents answering “ tend to trust ”'minus the share of respondents answering “ tend not to trust ” to the question please tell me if you tend to trust it or tend not to trust it? the european central bank. respondents answering “ don't know ” are excluded. [ 23 ] christelis, d., georgarakos, d., jappelli, t. and van rooij, m. ( 2019 ), “ trust in the central bank and inflation expectations ”, international journal of central banking. european central bank directorate general communications sonnemannstrasse 20, 60314 frankfurt am main, germany tel. : + 49 69 1344 7455, e - mail : media @ ecb. europa. eu website : www. ecb. europa. eu reproduction is permitted provided that the source is acknowledged. media contacts copyright 2020, european central bank

must remain mindful of such consequences arising from our actions. furthermore, there remains a need to clarify the range of available macroprudential tools and to calibrate the balance between rules and discretion. greater clarity is required on governance arrangements, both nationally and internationally, as well as on the potential interaction with other policy areas. these are areas i have discussed on previous occasions. a role for monetary policy in supporting financial stability so there are good reasons to believe that macroprudential policy in the euro area is currently constrained in its effectiveness. jeremy stein has argued that when macroprudential policy creates leakages to foreign banks or the shadow banking sector, monetary policy should be used for financial stability purposes because “ it gets in all the cracks ”. that would mean using monetary policy at the european level to mitigate the build - up of risks in the financial sector. using monetary policy for these purposes – often termed “ leaning against the wind ” – brings benefits in terms of reducing the likelihood and severity of financial crises, but comes at the price of below - target inflation during booms. that is a trade - off that needs to be balanced carefully, taking into account the risks on both sides. at the ecb, such considerations are incorporated into our monetary policy strategy via our two - pillar approach, which explicitly includes a role for monetary developments in our policy assessment. strong bank credit growth will be reflected in faster - growing monetary aggregates, which would warrant monetary policy tightening in response. house prices and trust in monetary policy the risks arising from strong housing price inflation extend beyond financial stability. at present, owner - occupied housing costs are not included in the harmonised index of consumer prices ( hicp ) that is used to formulate our inflation aim of below, but close to, 2 % over the medium term. there are a number of technical explanations for this exclusion, but it is clear that households view the cost of housing as an important part of their lifetime expenditure. rents represent around 6. 5 % of the basket used for measuring inflation. for many, rents alone or mortgage payments easily exceed a third of their takehome pay. so there may be a significant gap between what households perceive to be the increase in their cost of living and what is measured by the hicp. research shows that perceptions play an important role in determining economic behaviour. incorporating owner - occupied housing in the reference rate of inflation for monetary policy would provide a clearer signal for monetary policy to lean against housing price boom