This adds to uncertainty, as –among other things- it has implications for the medium-term outlook for price stability. In addition, a possible overshooting in the foreign exchange market could lead to fluctuations in the trade imbalances, including those of the euro area.
The short-term fixation on private benefits by hook or by crook, which has turned yesterday’s financial wizards into today’s leading exponents of white collar and financial crime, must give way to a clearer focus on the longer term and the public good aspects of our financial interaction with our fellow-man. Now, in today’s world, Keynes and his precepts are experiencing a revival.