Instead, the domestic reactions in the economy and economic policies to these external shocks have greatly strengthened their effects. In the short run, inflation rates may differ somewhat between EMU-member countries, but in the medium term harmonization is necessary.
If fiscal and macroprudential policy work together, they have the potential to achieve maximum impact. But let me return to the status quo. The currently binding framework for housing loans in Lithuania is nicely summarized in this slide. We have an LTV limit of 85%, DSTI of 40%, and maximum mortgage maturity of 30 years.