We are there to prevent these second-round effects. Over the medium term prices increases will go back to our definition of price stability: below 2%, close to 2%. Question: When Chancellor Kohl paved for the way for the euro – not single-handedly, but with real determination – he saw it above all as a political, not an economic, decision.
Banks have also come to appreciate the importance of independent controls within the credit review and rating process. Innovations in technology have facilitated significant improvements in bank information systems, a development that the Basel II proposal also has encouraged. These systems increase the ability of bank management to identify, measure, and control key characteristics of portfolio risk.