It also bodes well for Estonia’s future in EMU. Boom and bust My third observation regards another factor that also bodes well for Estonia as part of the euro area: the recent boom and bust episode in this country.
In other words, the more successful a central bank is with price stability, the more likely it is to imperil financial stability. The argument goes as follows. The extended period of steady growth and low and stable inflation during the Great Moderation lulled central banks into complacency.