In the rest of my remarks I will zoom in on some of these aspects of federalism. Economic aspects of federalism An important theme – one aspect of which will be addressed in the first session today – is risksharing. The crisis has reminded us that both private and public risk-sharing are underdeveloped in Europe, and that this underdevelopment comes at huge cost.
ex post events, which  The cluster at the top represents the increase in underlying inflation in 2008, which we did not fully anticipate. In the bottom left is 1999, when both unemployment and inflation turned out surprisingly well. But these outliers are unusual, with most of our errors clustered around the centre.