BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Political uncertainty have been rising recently though asset markets are not significantly pricing in tail risks, European Central Bank Executive Board Member Peter Praet said Thursday.
'Despite the resilient recovery in the euro area, and strong indicators of confidence across all sectors, measures of political and policy uncertainty have been rising recently, although asset markets are not significantly pricing in tail risks,' Praet, who is the ECB chief economist, said at an event in London.
'The recent bouts of uncertainty are a source of concern, and represent a downside risk to the economic outlook.'
Popular narratives can drive economic developments and they can also act as potent multiplier of economic shocks, Praet noted. The speed with which fake news can flourish nowadays with the help of advanced information and communication technologies is a 'serious matter', he added.
'As narratives often are key determinants of economic and political outcomes, it is important to be wary of them,' Praet said.
Copyright RTT News/dpa-AFX