These include the recommendation to transform the so-called level three committees of national supervisors into European authorities. In the field of macro-prudential supervision, moreover, a European Systemic Risk Council (ESCR) is recommended to be established, under the auspices of the ECB/ESCB. Allow me to take a brief look at an aspect that has moved somewhat into the background of the policy debate at present.
Housing has been contracting since the end of 2005, with steep declines in the construction of new homes, the sales of existing homes and the prices of both. There are reasons to expect that housing will continue to act as a drag on the U.S. economy for a few quarters yet.