In line with the medium-term orientation of the strategy, this reference value was based on assumptions concerning the medium-term developments in prices, real GDP and the velocity of circulation. Third, in parallel with this monetary analysis, a broadly based assessment of the outlook for price developments in the euro area is being undertaken.
Though originating from financial markets and innovative “opaque” financial products, it impacted virtually every aspect of the world economy with consequences affecting the masses. The instruments that were meant to disperse financial risks instead allowed financial institutions in general and the banking system in particular to become highly leveraged that ultimately lead to financial meltdown.