In relation to the latter, increasing interdependence means that close monitoring of financial conditions in emerging economies is essential in evaluating risks to domestic financial conditions in advanced economies. Fourth, the external value of the euro has varied sharply across time. This matters for the transmission of shocks and policies both through output and financial channels.
The role of central banks in the field of retail banking and payment systems The role of central banks is and should remain rather limited in retail payment systems. Central banks can promote a beneficial and competition-friendly environment for retail banking and payment services in particular as overseers and regulators. Their concerns are the integrity and reliability of the systems, not forgetting efficiency.