Comments from Mersch in Brussels
- ECB must ensure financial services remain safe, sound
On the face of it, this is a ho-hum comment. Naturally there is no impact on the euro but he's making a good point here. What was really the cause of the US housing bubble and bust? It wasn't rates it was innovation in financial services. While central banks are focused on models and statistics but I'd argue that the risks are in innovation as much as they are in monetary policy.
