5  Viral Acharya, Tim Eisert, Christian Eufinger, and Christian Hirsch, “Whatever it takes: The real effects of unconventional monetary policy”, SAFE Working Paper Series, No. 152, 2017. 6 Charles Bean, “The future of monetary policy”, speech at the London School of Economics, London, 20 May 2014. 7 Claudio Borio and Mathias Drehmann, “Financial instability and macroeconomics: bridging the gulf”, September 2009.
7  Procyclicality In the current context, financial stability risks interact with the issue of procyclicality. The failure of the traditional Phillips curve relation between the business cycle and inflation to thus far assert itself makes monetary policy increasingly procyclical. Economic growth in the euro area passed its cyclical trough in the first quarter of 2013, while core inflation bottomed out early 2015.