And even if a problem should persist, it would have to be demonstrated that central bank intervention was superior to other solutions. Finally, any intervention must be covered by our mandate. For example, I would not consider the provision of safe assets a task for monetary policy.
As always, the Governing Council stands ready to use all the instruments available within its mandate to respond to any material change to the outlook for price stability. References Bhattarai, S., Eggertsson, G.B. and Gafarov, B., “Time Consistency and the Duration of Government Debt: A Signalling Theory of Quantitative Easing”, unpublished manuscript, 2014.