A fundamental change in the way economic policy is perceived is called for. A collective understanding within society that it would be acceptable and appropriate for the macro-prudential authority to take away the punch bowl when conditions still seem to be benign, is necessary. This is a large change from the current policy paradigm, where measures are typically introduced after specific negative shocks occur.
I share the thrust of the EUROFI’s assessment – as expressed in the title to this session – that simply maintaining the status quo in EU regulation and supervision is not a suitable option for the way forward.