In doing so, we have to be aware of potential contagion risks across EU countries and feedback effects that can amplify financial instability. Policy-making in real time also has to rely on a diversity of forecasting tools and successful early warning indicators that allow us to assess the current level of systemic instability.
The MaRs team has worked hard on the development and evaluation of such tools as well as the utilisation of data sources that can be used for these tasks. 2  BIS central bankers’ speeches  This approach goes beyond understanding macro-prudential policies better. Another important example is analysing the impact of unconventional monetary policies.