And we’ve seen that working in December. We saw a substitution away from the LTRO and towards the MRO. The power of that instrument is sometimes not appreciated by the market.” “We’ve always had a policy to provide some term liquidity; we have the 3-month LTRO, for instance, which is still there.
In recent months, measures of volatility have risen in a wide variety of asset classes and across a number of countries, in U.S. Treasuries, in exchange rates, and in the Standard & Poor’s 500, just to give a few examples. There are many factors contributing to this increase, and I won’t try to list them all. But I will mention four.