Last September, the federal financial institution regulators issued supervisory guidance on nontraditional mortgages. These mortgages include interest-only loans that allow consumers to defer the payment of principal and make only interest payments for an initial period. They also include adjustable-rate mortgages (ARMs) with a payment option, allowing consumers to make “minimum payments” of less than the accrued interest.
To stimulate the economy and employment, economic policymakers are called upon to devise adequate structural measures that tackle the fundamental weaknesses and set off pressing adjustments. Whereas EMU entails a common monetary policy for all of its members, fiscal policy is formulated and executed at the national level.