Therefore, European restrictions on national authorities’ action, in a context where risksharing at European level is not complete, not only hinder the safeguarding of financial stability, but also heighten the underlying risks, affecting agents’ confidence in the financial system.
Evans and Honkapohja (2001) provide an extensive analysis of macroeconomic models with learning. Kaushik and Mitra (2002) argue that central banks should restrict themselves to policies that are “learnable” by the public. BIS Review 2/2004  3  warranted.3 Finally, and most important for my purpose today, communication by the central bank may play a key role in helping improve economic performance.