We have tested the interest sensitivity of loans every which way, and one thing is clear: small changes, of the orders of magnitude common in industrial countries, have little effect. We need better indicators of fiscal sustainability on the open economy. We keep talking about debt sustainability when we should be discussing fiscal sustainability.
In a period of low inflation, the effects of exchange rate developments are closely monitored. What should be done to weaken the euro further? Another reason why the euro is at this level vis-à-vis the US dollar is that the euro area has recorded large and growing current account surpluses – [Editor’s note: forecast at € billion for 2014]. This is new.