Deleveraging takes many forms and has both positive and negative effects on an economy, Benoît Cœuré, a member of the European Central Bank's (ECB) executive board, said today.

Speaking at a summit in Paris organised by The Economist magazine, Cœuré said the process of deleveraging could be troublesome to central banks, as it "badly hinders" the pass-through of interest rates to the economy. Nevertheless, the right kind of deleveraging is essential for an economy to recover from a financial