At the time, core economies, such as Germany and France, were seen as being systematically driven towards the floor of the range since other “catching-up” economies, such as Spain, were operating at high inflation rates and therefore pulling up the euro area average.
4 Supervisory information on banking activities, such as the use of credit transfer instruments and the relative importance of assets and liabilities held for trading, can be useful in enhancing this analysis. Another transmission channel often cited in the literature which has received increasing attention over the past two decades is the credit channel.