5.2  Monetary policy and the build-up of financial risk  The interaction between monetary policy and the amount of risk in the economy is not confined to the details of the collateral framework. It extends also to the interest-rate setting itself. Unfortunately, most macromodels are not well suited to analyse the relationship between monetary policy and the build-up of financial imbalances.
Due to the very limited use of virtual and regional currencies they compete neither with the banking sector’s payment systems nor with euro banknotes. The examples illustrate the superior characteristics of euro cash: its value is guaranteed by the ECB and the national central banks of the Eurosystem and it can be used throughout the euro area – and beyond – for payments.