Charts 1 and 2 seem to suggest that the concept of private sector involvement has introduced a sovereign risk premium specific to the euro area. On 21 July this year, the heads of state and government recognised that the case of Greece is special and that the modalitities to resolve the crisis will not be repeated.
Although we have some information on expected conditions from various surveys and from the earnings guidance provided by publicly traded companies, these indications are mostly qualitative, the quality is mixed, and research has not clarified their link to aggregate economic prospects. In the case of inflation expectations, we do have a larger number of indicators at our disposal.