This would be the starting point for a diagnostic process to identify the structure of the private sector in each country, the activities in which they are engaged, the difficulties they have as a private sector generally, and the specific impediments to operating in the export sector.
A recent paper by Bundesbank researchers has shown that if macroprudential policy is too lax, this might actually create a situation akin to financial dominance.15 Monetary policy may then be forced to step in by driving inflation above its price stability target and reducing the real burden of private debt.