Locally, the introduction of restrictions on low equity housing loans and the prospect of rising interest rates have been widely featured. Central banks’ communication strategies and their ability to communicate effectively have been challenged enormously by the events and consequences of the Global Financial Crisis and by the emergence of new technology and social media.
This concern was in everyone’s mind when the EMU was being conceived. In 1992, Bayoumi and Eichengreen published a well-known paper, 3 using data from 1963 to 1988 to calculate the correlation of demand and supply shocks of each potential EMU member with Germany, which represented the core of the union in terms of size and level of development.