Would we be able to find ourselves an active role in the Eurosystem, or become a passive bystander while the bigger players take decisions? Let me start with business cycle management. Euro and the business cycle Before we joined the EMU, there was a lively debate about its pros and cons. It was generally acknowledged that EMU would reduce certain sources of uncertainty.
So we saw marked increases in the ratios of housing prices and debt to household incomes up until the early 2000s. At the time, there was much discussion as to whether these higher ratios were sustainable. As things turned out, the higher ratios have been sustained for quite a while.