Admittedly, the dominating position of large member states in Europe is unprecedented in the US. Germany counts for 32% of euro area GDP, France for 22%. Taken together, California, New York and Texas count only for a modest 28% of US GDP.
5 / 11  BIS central bankers' speeches  Another risk is that the exchange rate remains higher than projected in the MPS, suppressing tradables inflation and net exports. As we indicated in the MPS, whether monetary easing would be required to offset this would depend on the factors driving the exchange rate (e.g.