In particular, if a counter-cyclical fiscal initiative triggers solvency concerns, the adverse impact of an increase in the sovereign risk premium can dominate the traditional Keynesian transmission mechanism (Corsetti et al 2014). More speculatively, this episode also raised the question whether a more coordinated approach to determining the fiscal stance could have alleviated the impact by internalising the cross-border spillovers of national-level austerity policies.
To promote innovation we 3/4  BIS central bankers' speeches  understand that we have to take risks—in our terms: we have to define a “risk appetite”. At the same time, when a risk is realized we have to confirm that it does not have macroprudential ramifications.