Yet, in its communication with the general public, the ECB goes far beyond these requirements. I would like to highlight that our clear mandate and our monetary policy strategy facilitate the ECB’s accountability with regard to the citizens of the euro area. 2.
This mechanism is exacerbated when funds are allowed to run on a mismatch between redemption rules and the liquidity of their portfolios; not surprisingly, open-end funds behaved more procyclically than other investors did during the March turmoil. Moreover, while funds provide greater diversification for end-investors, they typically display little diversity in their own strategies within each investment class.