See Kenen, P. (1969), “The Theory of Optimum Currency Areas: An Eclectic View,” in Mundell, R. and Swoboda, A., eds., Monetary Problems of the International Economy, The University of Chicago Press, pp.41-60. 25. See also Buti, M. and Messori, M. (2022), “A central fiscal capacity to tackle stagflation”, Centre for Economic Policy Research, 3 October. 26. See Farhi, E. and Werning, I.
In relation to the financial system, our macroprudential policies such as the countercyclical capital buffer that we triggered this summer and our mortgage rules are intended to ensure that resilience is enhanced during phases of good economic performance.