To date, these signals for the most part point to a strong and orderly transmission of the ECB’s policy tightening to the relevant financial and real variables.
There are changes in governance, tighter rules, some new institutions have been created to complete the architecture of EMU, and some of the older institutions have tighter mandates and instruments. There is now realism and acceptance of the need for such changes as never before. My reflections are organised along the subjects of sound money, sound finances and a competitive economy.