From today’s perspective, the Great Moderation, the era of remarkable macroeconomic performance started in the mid-1980s, appears surprisingly remote. Monetary policy makers have had to adapt quickly to the present macroeconomic and financial environment, which can be best characterised by the concept of non-measurable risk, or “Knightian” uncertainty.
Low-interest-rate environment and weak earnings: the situation of Germany’s banks  Let us now analyse the current situation of the German banking sector.