4  BIS central bankers’ speeches  A new approach to supervision The first building block is a willingness on the part of policy-makers to make bank balance sheets more transparent according to the common standards of the SSM. The SSM Regulation puts us in a position to do this by requiring a comprehensive assessment of the banks the ECB will directly supervise.
Percent 10 8  Figure 1: U.S. Unemployment and Inflation Gaps Inflation Gap (year-over-year core PCE relative to 2% target)  6 4 2 0 Unemployment Gap (relative to CBO natural rate of unemployment)  -2 -4 1960  1965  1970  1975  1980  1985  Note: PCE is personal consumption expenditures. Source: Haver Analytics; Congressional Budget Office (CBO).