Problems in financial intermediation The third consequence of severe and prolonged balance sheet adjustment is the deterioration in financial institutions’ efficient functioning as financial intermediaries.
It is, however, evident that if the assumptions – which are described as optimistic – are not met, in terms of productivity and the labour force, the risk of overheating is more imminent. The calculations of structural unemployment in Box I.10 show that the central estimate is just over 150,000, a substantially higher figure than the current one.