Given the vigorous monetary and credit growth in an environment of already ample liquidity, the Governing Council of the ECB will continue to be strongly vigilant in order to ensure that risks to price stability over the medium term do not materialize.
The fatal flaw was the combination.11 To some extent, the problems were self-reinforcing - when one weak link broke, this put more pressure on other linkages, which collapsed under the extra burden placed on them.