2  For a fuller explanation of this point see Praet, P. (2016), “The ECB's fight against low inflation: reasons and consequences”, speech by at LUISS School of European Political Economy, Rome, 4 April 2016.
These actions can best be initiated and monitored by governments and financial regulators. There will be a temptation for countries that do comply timeously with the problem to restrict trade with, and reduce investment in, countries that are not seen to be making sufficient efforts to become compliant or are unable to satisfactorily prove compliance.