2  Geneakoplos, J, “Promises, Promises,” in W. B. Arthur, S. Durlauf, and D. Lane, eds., The Economy as an Evolving Complex System, II, Addison-Wesley, Reading MA, 1997, pp. 285–320. 3  On collateral scarcity, see, for instance, Levels A. and J. Capel: "Is collateral becoming scarce? Evidence from the euro area", DNB Occasional Studies, Vol. 10, No. 1, 2012.
BIS central bankers’ speeches  1  resources through prices is the way our economies work. The problem would be a shortage of collateral and/or an impaired price mechanism. I will argue that is not the case in the euro area, where there is no aggregate shortage of collateral; local tensions may arise but they are being addressed in various ways.