Thereby consolidating the overall network accounting

01-Jan-2020 09:25

To restore uniform monetary policy transmission and tackle the risks to price stability, the ECB thus needed to combine conventional measures with unconventional measures tailored to the particular situation in the euro area.

thereby consolidating the overall network accounting-83

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This transparency allowed us to keep short-term interest rates in the euro area low and stable, which suited conditions in the euro area, despite the pressures seen on international capital markets.More recently, to help stimulate the flow of financing to the economy, the Governing Council decided on new unconventional measures to support the provision of credit.We gave banks access to five-year refinancing operations on the condition that, in exchange, they boost their lending to the real economy.And the third was to combat the risk of prolonged weakness in inflation at a time when all of the ECB’s conventional instruments had already been used.

These challenges guided our actions in pursuit of our price stability objective.

Our legitimacy is also in the balance: European strategies and decisions that require national political involvement cannot be effectively implemented unless they are fully understood and supported by the Member States.

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