Of particular interest, is the Guidotti Rule, which has received wide appreciation form many central bankers including Alan Greenspan, postulates that the ratio of short term debt augmented with a projected current account deficit (or another measure of expected borrowing) could serve useful an indicator of how long a country can sustain external imbalance without resorting to foreign borrowing.
When reading through my notes, I asked myself: did we indeed have a steady eye on the state of the banking sector? And have we applied the two principles of our strategy – that it is flexible and binding – in what turned out to be a very challenging year or so for monetary policy in the euro area?