Its title refers to "political consequences of the euro" and insinuates, in this way, some kind of watertight relationship between cause and effect. As a central banker and economist, I am only too aware of the danger of misinterpreting concurrent developments as causal relationships and of the risk of treating simple extrapolations from current trends as predictions of future developments.
Given this critical differentiation, credit conversion factor (CCF) is crucial. Higher CCFs could have adverse implications for flow of credit to real sector and capital formation in the EMEs.