the Eurosystem does not buy around the date of a new issuance, which facilitates the formation of market prices for PSPP-eligible securities. Furthermore, the relevant securities are also subject to an issue share limit and an issuer limit, which preserve market functioning. These features are compliant with the requirement to act in accordance with the principle of an open market economy.
Arguments for greater flexibility There are two broad classes of arguments for greater flexibility in the design and application of monetary policy frameworks. The BIS has done a great deal of useful work on asset-price targeting in particular and on the complicated interplay between monetary policy and financial stability in general.