What in fact is the relation between financial stability and monetary stability? The article, as a first step, introduces the study on this relation by overseas academics, then it analyses the short term contradictions and conflicts between them from the point of view of preventing financial crisis and bailing out institutions at risk.

According the China\'s financial situation,we must strengthen the effective risk distribution and resource distribution among the parts of financial system,put the independency of central bank,the monetary stability policy and financial stability policy into unite frame,coordinate the monetary and financial stability policy and improve the level of risk management of financial institutions.