That question remains unanswered as yet. In the meantime, regulation and endogenous market developments have also changed market participants’ liquidity requirements. Experience in the United States has shown how monetary policy normalisation could take place. But this could never be a one-for-one blueprint for the Eurosystem. While the two currency areas may share some similarities, there are also vast differences.
From the moment human beings began to engage in organized economic activity of some sort, there was a prevailing sense of awareness of the need to transfer risks that could not be borne by an individual economic entity to other economic entities and to diversify them.