You can see this clearly on Slide 6, which shows composite indicators of euro area financial integration produced by the ECB. The quantity-based indicator remains at about half of its pre-crisis peak, and at very low levels in absolute terms. [26] The price-based composite indicator is about 30% below.
Inflation has risen lately but should moderate, assuming that commodity prices stabilize and that, as I expect, longer-term inflation expectations remain stable. Against this backdrop, the Federal Open Market Committee (FOMC) has maintained a highly accommodative monetary policy, keeping its target for the federal funds rate close to zero and further easing monetary conditions through large-scale asset purchases.