That said, it has never fully exited crisis mode,2 and the permanent state of emergency has left its mark. Monetary policy’s frame of reference has shifted. In introducing non-standard monetary policy measures, the ECB Governing Council ventured into previously uncharted territory. In the discussions on this topic, it was always essential in my mind for the central bank to respect its narrowly defined mandate.
After all, central bankers are not elected political agents and should therefore not make any decisions that are reserved for parliaments and governments. Otherwise, they could put their independence and therefore the basis for a stability-oriented monetary policy at risk. I’m certain that the line I draw between monetary policy and fiscal policy is more clear-cut than the one drawn by others.