The grey area and the dashed section of the blue line refer to implicit “well past” intervals prior to the announcement of the “well past” communication on 10 March 2016. Inflation expectation deviations from the aim are derived as the difference between 1.9% and the 5-year-in-5-year inflation expectations implied by inflation-linked swap rates.
One enhancement is about fire sales mechanisms stemming from interactions between banks and shadow banks.9 Another example worth mentioning is about systemic aspects of liquidity and its links with solvency conditions accounting for pertinent interactions between market participants captured in an agent-based modelling fashion.10 Though, what is still required is further strong support from the research community to provide theoretical foundations for the various components of the stress test apparatus.