If we in the eurozone have been battling too low inflation over the last decade, the issue of high, or even too high inflation emerged at the end of last year, and of course things have only worsened in this regard due to geopolitical tensions in Ukraine.
Macroprudential surveillance assesses current risks by looking at the broad economic and financial conditions that can contribute to the buildup of risks to the financial system and to the economy as a whole. Macroprudential regulation aims to strengthen resilience in the financial system by designing standards and codes to limit the buildup of financial and economic imbalances.