Even in the best case scenario where the participation rates of young people and women rise progressively to catch up with the EU average, in the next twenty years, economic growth will not be able to rely on the endogenous expansion of the labour force: the effects of the decrease in the population in the central age groups may be mitigated in the medium term, besides by an extension of the working age, only by an increase in net migration (which in Istat’s baseline scenario is projected to amount to 135,000 people per year, more than double that of the past ten years, after averaging more than 300,000 in the previous decade).
Central banks are especially suited to the macroprudential aspects of financial supervision because they already have a duty to maintain a constant overview of market developments. As I’ve already mentioned, central banks are also aware of the side effects of regulatory initiatives.