At the same time, it is conspicuous, however, that the price indices for non-tradables and for the overall cost of living in Germany and in France moved virtually in parallel during that period.
For example, it facilitates the provision of credit, the security of depositors’ funds and the smooth operation of payments systems. Serious financial instability can manifest itself in terms of banking crises and recession and can be very costly for any economy in terms of disruption and reduced output and employment.