7. In the same BIS working paper identified in the previous question, the following statement appears:

Although a commonly held view of systemic risk suggests that financial stability can be secured through a microprudential approach, an analysis of the origin of financial crises with significant macroeconomic costs suggests that a macroprudential perspective is important.

a. What is meant by “financial stability”?

b. Why is a macroprudential perspective important when dealing with financial stability?