In this situation, attention should continue to be paid to the risk of a gradual pullback in financial intermediation and to the possibility that the vulnerability of the financial system will increase, mainly as a result of financial institutions' search for yield behavior.
With the convergence process during the 1990s, inflation volatility fell  BIS Review 49/2005  1  strongly. The volatility of quarterly HICP inflation in the euro area (measured as the standard deviation over the previous six years) fell from around 0.6 percentage point during the late 1980s to less than 0.3 percentage point in the mid-1990s.