The crisis has highlighted the downside of having “Too Big to Fail” entities. Very big and complex entities pose supervisory issues to the regulators and pose serious systemic risks. So we need to ensure that structures are not complex and that there are effective resolution mechanisms to ensure orderly winding up of these systemically important entities, in case of crisis.
Not just the ECB but also the IMF, the Survey of Professional Forecasters, Consensus Economics, Euro Zone Barometer, OECD and the European Commission, all have systematically overpredicted both headline and core inflation at all horizons, especially since the second quarter of 2012.