Readings from the financial markets are helpful, but they are also muddied by changing premiums for inflation risk and liquidity, and they are not necessarily representative of the attitudes of households or businesses. Moreover, how expectations are formed remains an area that would benefit from further research. How much do people rely on the immediate past in forming expectations about the future?
It is the currency for the euro area as a whole. And the euro area as a whole has a balanced current account and a public finance deficit much lower than many big advanced economies. Such a currency, with such strong underlying fundamentals, is solid and credible. 8. Do you think that Spain is implementing sufficient reforms?