While much progress has been made on studying notions such as Knightian uncertainty, sentiment, confidence or sunspots, more work is probably needed before they can be part of our standard modelling toolbox. A challenge is of course to come up with tested and robust behavioural theories.
In this respect, the depreciation of the exchange rate of the euro, until it is reversed, will increase the risks to price stability in the medium term. These risks have to be taken seriously in the light of the current strong upswing.