In our case, the flexibility of monetary policy in Economic and Monetary Union has not been limited during the crisis despite very low interest rates. The success of unconventional monetary policy measures has shown that central banks have more instruments at their disposal than just the short-term interest rate.
Yves Mersch: Basel III and liquidity surveillance in Luxembourg – building an operational systemic and micro-prudential framework Speech by Mr Yves Mersch, Governor of the Central Bank of Luxembourg, at the General Assembly of “The Luxembourg Bankers’ Association”, Luxembourg, 27 April 2011.