Yet, I nevertheless believe it could be an effective way for Capital Markets Union to contribute to consistent pricing of risk across countries. For it will help ensure a homogeneous, but risk-consistent transmission of monetary policy decisions. 10. But Capital Markets Union can deliver on more than just that. It can also greatly increase the efficacy of monetary policy.
Common to all monetary policy decisions is that their transmission to the real economy is sluggish and can sometimes be incomplete. For example, the extent to which banks are able to lower lending rates following a rate cut depends on many factors beyond the control of monetary policymakers.