But by introducing supervision at the European level, the Banking Union offers a possibility to better pre-empt such developments in the future – and therefore to better protect the real economy and financial stability in the whole area.
Second, taking New Keynesian Models with a minor role for money on board must not mean that we should leave aside other models with a key role for money. On the contrary: The well-established fact that there is a strong relationship between money and inflation at low frequencies urges us not to exclude information from money.