BIS central bankers’ speeches  5  an exclusive view to maintaining a stable price level, it is less important, at least within certain limits, whether the central bank lends against private or public collateral. Does this imply that the distribution of central bank liquidity does not matter?
The answer is yes, but only to the extent that it does not undermine the incentives for private and public agents to systematically violate their solvency conditions. 10 By contrast, if these conditions are violated, risks of fiscal and financial dominance could emerge.