2  BIS Review 40/2008  – and right up to the outbreak of the turmoil – the ECB and other central banks had repeatedly warned of the excessively low pricing of risk.
6 On the empirical side, recent ECB research 7 has analysed the role of various indicators (such as consumer price indices, residential property prices, asset prices, broad and narrow money and credit) in predicting the occurrence of episodes of financial turbulence and their output costs.