This is why various types of expectation formation mechanisms are explicitly included in our analysis at the Bank of Canada. We look at different surveys of expectations from forecasters and business owners.
Deeper integration can only make the euro area stronger if each level assumes responsibility for the debts it incurs. Only this will ease the pressure on the Eurosystem to act as a troubleshooter time and time again, which can, however, create conflicts regarding the limits of its mandate and its independence.