As a measurement of the relative importance of the markets, he uses variables like the ratio of market capitalization to private sector credit and the ratio of trading turnover to loans. In all cases the results were not significant, indicating that the financial system structure seem to be irrelevant towards growth.
Too low inflation is damaging in the long term and deflation is dangerous Since February 2013 inflation in the euro area has moved away from the ECB’s medium-term objective. The persistently low inflation has also affected medium and long-term inflation expectations, which are significantly below the levels of previous years. Low inflation in the longer term provides only a small buffer against sustained deflation.