The economic analysis assesses the short to medium-term determinants of price developments with a focus on real activity and financial conditions. The monetary analysis concentrates on a longer-term horizon. It exploits the long-run link between money and prices and serves as a means of crosschecking, from a medium to long-term perspective, the short to medium-term indications for monetary policy resulting from the economic analysis.
Developments since 1945 prove this assertion: Europe’s growth led to a substantial catching up with the US, keeping its different financial system. In spite of the role of capital markets in the US, SMEs continue to be financed mostly by banks with the significant help of guarantees provided by the US Small Business Association to the tune of USD 30 billion per year.