Taken together, such developments would clearly point to upside risks to price stability over the medium term, if not counteracted in time. 1  BIS Review 48/2000  Turning to the second pillar, we have to consider economic and financial market developments as well as consumer price developments.
Looking at economic developments, the outlook for growth in the euro area has improved markedly over the past few months. Overall, indicators for economic activity released since the end of last year point to continued strong growth, following the upturn in real GDP growth in the second half of 1999.