It also means guarding against operations that unduly distort market allocations or worse, that would have intended distributive effects. And it means designing a programme that is effective given the financial structure of the euro area – where, for instance, bank-based intermediation is pre-dominant and wealth effects through equity and real estate prices are less important transmission channels than, say, in the US.
7  As noted in Bernanke (2007), Ihrig and others (forthcoming) find that these results are sensitive to details of specification. BIS Review 24/2007  5  Policy implications A review of the possible causes of the changes in inflation dynamics naturally leads to the question of their implications for the conduct of monetary policy.