One way to control such adverse incentives is to insure sufficient capitalization of financial institutions, so that their owners have sufficient ‘skin in the game’. In this regard, regulators have done much after the Global Financial Crisis. But supervisors need to stay constantly alert. Cyber security Second, there is the issue of cyber security. The European financial system is highly interconnected and interdependent.
Because energy prices move up and down a great deal, we also look at core inflation. Core inflation excludes energy and food prices and generally is a better indicator of future overall inflation. Core inflation was 2.0 percent for the 12 months ending in May, compared with 1.5 percent a year ago.