First, the crisis has reconfirmed both the scope and the limits of what central banks can do to support the economy. Central banks play a pivotal role in stabilising funding conditions at times of acute market turmoil. But they cannot compensate for weaknesses in banks’ capital positions. And they cannot substitute for reforms to boost the growth potential of economies.
Second, in the euro area, the crisis has demonstrated the capacity and unwavering commitment of the European Central Bank (ECB) to support the economy in its pursuit of price stability. We have adopted monetary policy measures that are unprecedented in scale and scope.