This is required to ensure that the desired monetary policy stance is reflected not only in the financing conditions of countries perceived as vulnerable to fragmentation, but also in the financing conditions of the other countries. In the vulnerable countries, fragmentation would lead to capital outflows and an increase in yields, resulting in financing conditions that would be too tight.
Astonished, Andrew then had to point out that there were hardly 40 economists in the entire BIS, and they had to cover everything: real, nominal, financial and, not least, oil. How could such a misconception arise? In part, it was because of the enormous output of Palle, and of course other colleagues, over the course of the years.