Yves Mersch: Interview in Frankfurter Allgemeiner Zeitung Interview with Mr Yves Mersch, Member of the Executive Board of the European Central Bank, in Frankfurter Allgemeiner Zeitung, published on 14 October 2013. *  *  *  Mr Mersch, you are responsible for setting up banking supervision at the ECB. That is a huge task.
If your predictions are based on sophisticated models that have never heard of traffic lights and have been estimated over complex roundabouts and multi-lane intersections, you just don’t get that simple fact. It is even technically difficult to devise ways to put red lights into standard models by way of ad-hoc dummies and add-ons.