We discuss whether recent stress in the banking sector will adversely affect Euro Area economic growth. We look at the latest indicators, their pandemic dislocations and academic research on the importance of financial shocks for business cycles (Jermann & Quadrini, Macroeconomic Effects of Financial Shocks, American Economic Review, https://www.aeaweb.org/articles?id=10.1257/aer.102.1.238 )
