The ECB is well prepared to take appropriate action and also to exit from its non-standard monetary policy and liquidity management measures in a credible manner once the macroeconomic environment improves. Most importantly, we will continue to deliver on what we are expected to deliver, which is to maintain price stability, and to provide an anchor of confidence in difficult times.
References Blanchard, O. and R. Perotti (2002). "An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output." Quarterly Journal of Economics 117(4): 1329-1368. International Monetary Fund, World Economic Outlook (2008). Chapter 5 "Fiscal Policy as a countercyclical tool." October Perotti, R. (2002). "Estimating the effects of fiscal policy in OECD countries." ECB Working Paper no. 168.