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In this paper, we analyze the interactions between monetary and macro-prudential policies and the circumstances under which such interactions call for their coordinated implementation. We start with a review of the interdependencies between monetary and macro-prudential policies. Then, we use a DSGE model incorporating financial frictions, heterogeneous agents and housing, which is estimated for the euro area over the period 1985-2010, to identify the circumstances under which monetary and macro-prudential policies may have compounding, neutral or conflicting impacts on price stability. We compare inflation dynamics across four'policy regimes' depending on: the monetary policy objectives–that is, whether the policy instrument, the short-term interest rate factors in financial stability considerations by leaning against credit growth; and the existence, or not, of an authority in charge of a financial stability objective through the implementation of macro-prudential policies that can'lean against credit'without affecting the short-term interest rate.