If we are to succeed in escaping that trap and sustainably reflating the economy, there needs to be the confidence that combined policy support will not be withdrawn prematurely. Today I will discuss how advanced economies entered this liquidity trap, how likely they are to exit it, and what this means for the future policy mix in the euro area.
TIPS has the potential to be the underlying infrastructure that will facilitate instant payments across Europe. It will provide the basis for innovative payment services to flourish and, in tandem with the services offered by ACHs, it can help foster pan-European reachability.