In the near future, we will have to assess how the forces that are driving prices today can influence the outlook for price stability in the medium term and help durably stabilise inflation around our goal. The economic recovery will support domestic price pressures. Indeed, the upswing is continuing at a steadily firming pace and is broadening across sectors and countries.
A regulatory response for the too-big-to-fail problem would enhance the safety and soundness of large financial institutions and thereby reduce the likelihood of severe financial distress that could raise the prospect of systemic effects. Such a response consists of three elements. First, the shortcomings of the regulations that failed to protect the stability of the firms and the financial system need to be rectified.