In fact, since May 2009 we have kept the ECB key interest rates unchanged. Many central banks, including the ECB, also resorted to a number of non-standard measures to support the functioning of financial markets with a view to maintaining the monetary transmission channel and to supporting the flow of credit to the economy in critical times.
Some of these entities were forced to engage in rapid asset sales at fire-sale prices, which undermined confidence in counterparties exposed to these assets, led to sharp withdrawals of funding, and disrupted financial intermediation, with severe consequences for the economy. Private-sector risk management also failed to keep up with financial innovation in many cases.