Moreover, particularly noteworthy for the euro area is that the increase in trade with the rest of the world has been even greater than the increase in exchanges within the euro area. What is even more remarkable, perhaps, is that the euro area is more financially open than the United States and Japan. Let me present four observations.
More specifically, I would like to examine the rationale behind the hypothesis that inflation cannot be attained no matter how much the Bank increases the monetary base because its liquidity injection will only increase the excess reserves of financial institutions and not increase the amount of money in the real sector.