That means that the effect on the availability and terms of bank loans and subsequent impacts must be observed. This is especially true in a bank-dominated financial system such as the German one. Standard models used to assess the impact of monetary policy decisions, like the expectation augmented Phillips curve, need to model inflation expectations.
Not all volatility is due to “black swan” events that deserve risk-takers being carried through. 8. Finally, there is usually an uninspiring chatter every time G-Sec yields show a sustained rise that the market is irrational in its movements.