Although this scenario is far from our central projection in New Zealand, it is much better for us to prepare for unconventional monetary policy while the sun is shining. In the near future, we will publish the principles that guide our thinking on unconventional tools, and we are currently working our way through operational considerations of the different options.
Together with cyclically induced strains, this has resulted in a situation where those countries are now finding it difficult to comply with - or are already overshooting - the 3% deficit ratio limit. Germany is among these countries. The EU-commission has already implemented the excessive deficit procedure.