As we all know, some central banks have struggled to achieve their targets over a long period of time; Japan and the euro area are the obvious examples. But this is not a universal experience. Over recent times, inflation has been around target in Canada, Norway, Sweden and the United Kingdom. So the experience is mixed (Graph 5).
For this potential benefit of securitisation to come to fruition it is of course key that the risk transfers are genuine; in other words, it is necessary that the risk is really transferred to third parties. The experience of the crisis showed that this condition was not always met in the past.