Particular attention ought to be given to the ability of management and boards to run large and complex banks, the powers of the risk management function and the quality, comparability and transparency of risk disclosure, the possibility to use designated bail-in instruments in remuneration schemes, and the appropriateness of imposing caps on variable as well as overall compensation.
4 Relationship between monetary and fiscal policy Fiscal policy can significantly "support" the fight against high inflation. Expansionary fiscal policy would fuel inflationary pressures. I go along with the European Commission's recommendation that EU Member States should phase out the fiscal measures they took in response to the energy price shock.