* * * This year marks the 70th anniversary of the Schuman declaration, which first put forward the idea of a single authority to govern the production of coal and steel in Europe. Robert Schuman’s method for building Europe was clear: “Europe will not be made all at once”, he said, but “through concrete achievements which first create a de facto solidarity”.
The macroprudential stance is defined as loose or tight depending on whether the difference between risk and resilience is above or below some pre-specified level that measures the risk tolerance of the authorities, and thus, the “neutral” policy stance. This is an interesting framework and I certainly welcome it as a good starting point for a policy discussion.