In member countries macroprudential tools are in place to combat these risks. Will the 1,1 trillion programme do the job and bring back growth and inflation? Liikanen: The programme is scheduled until September 2016. Then we look at the situation. If inflation has not reached the target of close to 2 percent, we will continue our efforts to reach our target.
That said, however, there is no case for fiscal activism. There is considerable evidence showing that fiscal policy can only contribute little, if anything, to stabilising economic activity, given the lags in the decision-making process and the time needed to fully affect economic activity.