The monetary policy response to a positive demand shock is straightforward: tighten policy. Climate events have been good examples of supply shocks. Indeed, droughts are often the textbook example used to illustrate a supply shock. A negative supply shock reduces output but increases prices.
Still, it is the panda that I would like to use today to illustrate the state of the German banking sector, and to show that the sector is not in as bad a shape as is currently perceived. The panda and the banking sector do indeed have something in common.