The close link between the persistence of wages and inflation may be related to institutional features, such as the presence of some form of automatic price indexation of wages which continues to exist in some countries, including Spain. And third, an economy can suffer a long period of strong demand pressures.
It will also be important to look at the adequacy of existing crisis management frameworks. Coordination will be required on how to address the financial stability risks arising from a possible wave of corporate insolvencies, as well as on identifying the conditions that must eventually lead to the unwinding of current emergency measures, so as to avoid unintended effects across sectors and jurisdictions.