One measure of public perceptions is the dataset maintained by the European Commission, which shows that households believed that in ation in the euro area was approximately 9 per cent on average in the period between 2004 and 2018, when it was, in fact, 1.6 per cent (Cœuré 2019, Arioli 2017).21 Such misconceptions regarding macro and monetary phenomena are not limited to the euro area.
Those at the helm of regulatory authorities bear in mind one thing: if they don’t hear any explosion, it means they are dead already. Last year, the Bank of Mauritius revoked the banking license of a 7-year old bank that was part of one of the biggest corporate bodies in the country. It was a systemically important Group of companies.