While this improvement is certainly welcome, we are facing two challenges: first, significant fragmentation – while mitigated – remains. Second, we must be wary of the potential side effects of our monetary policy.
In fact, the partial relaxation in financial markets, which I mentioned, has already induced some commentators to ventilate the idea that we may face renewed exaggerations – not unlike the underpricing of risk that we have seen before the crisis in some market segments.