First of all, we could re-nationalize the financial markets. In such a solution, the single market as well as the single currency and single monetary policy would be lost. Second, we could just accept the risk of financial instability. Or finally, we could work to create a banking union, with single supervision and resolution. Only the last one of these is acceptable.
Together, these and other factors give grounds to hope for the kind of self-reinforcing cycle of economic growth that we have been waiting to see. And as our economy has gradually improved, it has become possible, and appropriate, for the Federal Reserve to provide clearer guidance on the path of monetary policy.