The new institution Mistrust of the currency is inevitably reflected in corresponding risk premiums in the interest rate, and thus costs a country dearly. The Statute assumes particular significance precisely in the case of a new currency and a new central bank - it is an important signal of what monetary policy and what money the public can expect.
Contents 1  INTRODUCTION .............................................................................................. 2  2  LOW INTEREST RATES AND STRONG GROWTH MIGHT CAUSE RISKS TO BE UNDERESTIMATED. ................................................................................. 3  3  RISKS CAN BE MUTUALLY REINFORCING IN THE FINANCIAL SYSTEM . 5  4  THE RESILIENCE OF THE FINANCIAL SYSTEM COULD BE OVERSTATED 6  5  WHAT NEEDS TO BE DONE?