With inflation already likely to have peaked and with the ECB predicting a return to beneath the 2% target ceiling thepolicyadjustment process is becoming less of a factor, while one good shock is all it might take to unsaddle already fragile European confidence that could derail the euro once more.
Given banker fears and uncertainty, particularly over the adequacy of their capital, bankers would likely regard the loss of those reserves as a significant tightening of monetary policy rather than a mere technical adjustment.
Education policy needs to aggressively adopt the same kind of risk adjustment measures, if we hope to identify which high schools are truly doing the best job of educating their students and preparing them for the future.
"Financial forces have been dominating theadjustment process in the euro area, " Mr. Gaspar told an audience of economic policy makers in Brussels on Tuesday.
But easy monetary policy, by bringing forward spending from the future to the present, means that the ultimate adjustmentof borrowing and spending will be even greater.