Greece will remain a unique case, and a credible stabilisation mechanism, a firewall, will be in place and can be activated when needed subject to proper conditionality. The leaders unambiguously agreed to assess the adequacy of the firewall by next March. Its objective is to address the threats to financial stability, and especially the risk of contagion between different sovereign debt markets.
Private credit growth, which is the main counterpart of money supply, does at times play a role in driving inflation, yet economic and financial cycles do not always coincide, and the latter generally has a longer duration. Excess focus on credit growth in a monetary policy framework would therefore risk missing key cyclical influences on inflation.