That, however, is not the approach adopted by the Eurosystem! 3  BIS Review 40/1999  Instead, the strategy of the Eurosystem opens up other options for the appropriate consideration of the interaction between the deployment of monetary policy instruments and macroeconomic fluctuations.
Indeed, given the historically low level of unemployment, it would be surprising if there was a widespread problem with housing loan arrears at present. How do we square the relatively benign picture on arrears with the apparent sharp decline in housing affordability such as shown in Chart 5?