Full implementation of post-crisis financial sector reforms should be followed by a structured evaluation of the effects of reforms. A structured evaluation is needed in order to assess the impact and the effectiveness of the reforms implemented and to study potential unintended consequences. 1. What are the drivers and costs of financial crises? Financial crises have been a recurrent theme in economic history.
This reflects to some extent our monetary policy measures. By removing securities from the market, the ensuing scarcity exerts downward pressure on repo rates. For instance, specialness premia tend to be higher in those market segments where the Eurosystem has purchased more bonds relative to outstanding amounts.