Paradoxically, there are actions at the national level in advanced economies that can be seen as a way of international cooperation in view of their potential global repercussions. The first one relates to communication. As I noted above, in the current setting, a latent source of spillovers derives from a still-substantial degree of uncertainty regarding the future course of monetary policy in advanced economies.
Imbalances in other asset markets, vulnerabilities in the banking sector – these also demand our equal attention. Let us look at the expansion of credit which is most likely the culprit of “speeding” prices. Some colleagues distinguish between “productive” and “non-productive” credit, because not every credit contributes equally to economic growth.