Nevertheless, it should be borne in mind that there are also downside risks, which could, if they materialize, make it harder for prices to swiftly regain an upward trend: an example is the progress of economic globalization, which may cause prices to respond less sensitively to changes in the output gap than hitherto, and cause wages to take longer to establish their recovery than projected.
Still prevailing liquidity ring-fencing reflects the fact that the interests of a banking group management, which is responsible for the allocation of liquidity within the group, is often not aligned with the public interests of the Member States where the subsidiaries are established3.