As shown by the results of the Macroeconomic Assessment Group as well as by the referred paper of Kashyap et al (2010), the length of the implementation period matters crucially for determining the transition costs. Clearly, the longer the implementation period, the milder is the negative impact on the economy.
Working with the industry leaders and experts on the T2S Advisory Group, we, the ECB and the Eurosystem will advise and cooperate with such bodies, with a firm eye on the need for progress. To focus our own effort, we intend to present a progress report on the achieved degree of harmonization to the ECB’s Governing Council by early 2009.