But since the crisis broke, integration has reversed. It currently stands at 0.2 on a scale where zero represents full fragmentation. As a result, cross-border risk-sharing in the euro area is almost non-existent.
Conclusion Our challenge is to sustain full employment and inflation at 2 percent, which is likely to warrant continued gradual increases in the federal funds rate. With fiscal stimulus in the pipeline and financial conditions supportive of growth, the shorter-run  19  See, for example, Li and Wei (2013); Curcuru, De Pooter, and Eckerd (2018); and Curcuru and others (2018).