- Timely exit from non-standard measures, return to a less accommodative monetary policy stance essential
- Monetary policy is not and cannot be a substitute for sustainable fiscal policies, structural reforms
- ECB can withdraw ample liquidity whenever governing council deems liquidity conditions excessive
- ECB strategy ensures more symmetric policy with respect to financial misalignments, some “leaning against the wind”
- Independence is essential for central banks, particularly in periods of sovereign funding stress
- Timely exit from non-standard measures and a return to less accommodative policy are essential when conditions are ripe
- Prolonged accommodative policy might fuel asset bubbles, discourage balance sheet strengthening
- All tools necessary for a large-scale liquidity withdrawal are already in place or will be available when needed
Reuters reporting.
