They must be understood by the federal policymakers who are responsible for enforcing our country’s laws and regulations in the realm of access to credit; by the federal policymakers who engage in the conduct of monetary policy; and by the federal policymakers whose actions contribute to the shaping of the landscape for financial services in this country.
Of course the problem in the euro area is that inflation is persistently low, but so too is nominal demand (1% annual increase over the last seven years compared with 3.7% before the 2008 global financial crisis). Clearly, the denominator effect is a risk to public debt sustainability, while anaemic growth and/or a very low inflation are far from helpful.