5 See, for example, ECB (2019), “Euro area bond funds continue to expand and increase liquidity risk”, Financial  Stability Review, Chapter 4, November; and ESRB (2019), “EU Non-bank Financial Intermediation Risk Monitor 2019”, July. 6 Boucinha, M. et al. (2020), “Recent stress in money market funds has exposed potential risks for the wider  financial system”, Financial Stability Review, ECB, May.
12  A Taylor rule could also be consistent with a regime that set inflation as the sole objective. In this case, the output gap terms would be viewed as a predictor of inflation, allowing policymakers to take pre-emptive action to contain the threat of higher inflation, in addition to directly responding to higher inflation itself. 13  See Kim and Henderson (2000).