These phenomena have severely harmed long-term performance, and were not cost-free in terms of welfare: excessive volatility is probably the main reason for our country’s economic stagnation in the last three decades of the previous century.
Furthermore, the past quarter of a century was prolific in terms of the lessons learned from the crises of diverse origin and the consequences for the monetary and financial regime. We know that the channels through which excessive volatility affects economic performance are different.