However, judging from the information we have obtained so far, there is a possibility that purchases by the Bank may act rather as a catalyst to increase both transactions and market participants so that the market function is expected to strengthen in a self-generating way. We hope that such a virtuous cycle will be engendered.
Real interest rates in the euro area are now considerably below their average levels observed over the past decade. While the benefits of EMU are quite obvious even in the short run, the real dividends from monetary union are yet to come.