The federal government and the Reserve Bank of Australia have incorporated a financial stability objective into the latest official Statement on the Conduct of Monetary Policy.The RBA has a formal charter that commits it to pursue price stability, full employment and "the economic prosperity and welfare of the people of Australia". The statement was created in 1996 as a device to allow the RBA to focus on using monetary policy to control inflation. (There is economic theory suggesting that with only one major tool - monetary policy - the RBA should focus on only one target.)The new statement re-commits the government and the RBA to low inflation - "medium-term price stability", as the statement puts it.But the statement now closes with a section on financial stability, which stresses the RBA's role in financial crisis management while adding that it should "co-ordinate closely with the Government" and with fellow regulators APRA and ASIC.