Against this background, the Governing Council concluded that vigilance is required and pointed to several factors. First, developments in monetary and credit aggregates will need to be analysed continuously in order to assess upward risks to price stability.
Given this fresh experience, and my earlier remarks, I would assess the costs of providing tax incentives for leverage to be higher today than such an assessment in, say, 2006. With that in mind, I believe that my analysis suggests two changes in the tax code.