For example, a key feature of the present crisis is the impairment of the monetary transmission mechanism in which fragilities in banks’ funding models and their exposure to government debt have played a significant role.
Turning to the monetary analysis, recent data confirm that the underlying pace of monetary and, in particular, credit expansion continues to be subdued. Annual growth in broad money, M3, increased in April to 3.2%, from 2.6% in March, mainly due to a base effect and special factors.