And in our decision, we have taken into account the specificities of the euro area, meaning that we operate in an environment of decentralised national fiscal authorities, and the ECB has no mandate to engage in large scale pooling of fiscal risks. But we have also learned from the crisis that policy interdependence has different dimensions.
The so-called Long-term Economic Impact study – which like all such studies necessarily employs a range of simplifying assumptions – suggest that a 1% lowering of the yearly probability of a major financial crisis corresponds to an annual output gain of 0.6%.