Quite evidently, both pre-mature action or delayed action can be costly in macroeconomic terms. In order to deploy countercyclical buffers, we need to hone our skills in business cycle analysis which again is based on time series analysis – one of the two focus areas of this conference.
10 See Padoa-Schioppa, T. (2002)“Central banks and financial stability: exploring a land in between” in Gaspar, V.,  P. Hartman and O. Sleijpen (eds)“The transformation of the European financial system”, Second ECB Central Banking Conference.