The negative effects on credit supply of the high risk of default must be counteracted. Looking further ahead, it is necessary to foster the development of a diversified financial system in Italy in which the role of the capital markets and institutional investors is on a par with that in the other main countries. These issues are addressed in the following pages.
•  On the one hand, activity has rebounded much more strongly in Q3 than expected. This confirms that idle resources can resume economic activity much faster when no longer constrained by cointainment measures, which will support the medium-term inflation outlook. Moreover, households and firms seem to adapt better to the pandemic and the containment measures, which arguably makes activity more resilient.