Executive summary
Assessment and Recommendations
Chapter 1. Key Challenges
-A slowing economy, receding inflationary pressures and financial market turmoil
-Monetary policy must ensure that price stability is maintained
-Challenges to build more effective markets and better institutions
Chapter 2. Financial Integration, Innovation and Monetary Policy Transmission Mechanism
-Financial market deepening
-Financial integration in Europe
-Financial innovation
-Financial innovation and competition affect the channels of monetary policy transmission
-Annex 2.A1. Wealth effects on household consumption in the euro area
Chapter 3. Financial Market Stability: Enhancing Regulation and Supervision
-Introduction
-Why prudential regulation is necessary
-Recent turmoil in financial markets
-The prudential framework for the single European capital market
-The wider macro-prudential framework
-Recent European prudential initiatives
-Areas for improvement in Europe's prudential framework
-What regulatory architecture for the European banking industry
Chapter 4. Fiscal Policy
-Durable progress towards fiscal sustainability has been limited
-The role of fiscal policy in the economic cycle
-Fiscal aspects of financial sustainability
-Taxes and spending should be better designed to promote growth
Acronyms and Abbreviations