In these two further pictures [Figures 1b and 2b], the quantity of aggregate risk is proxied by the macroeconomic uncertainty introduced by the volatility of real per-capita consumption growth [– as measured by rolling standard deviations of per-capita real consumption growth –] and the level of inflation in the two economies.
In particular, they pose the threat of blurring the line between monetary and ﬁscal policy – the allimportant boundary for the monetary union. In order to curb such risks, the ECB Governing Council incorporated essential guarantees and safeguards into the public sector purchase programme (PSPP) set up in 2015.