By contrast, the unwinding of outright purchases, in particular of long-term bonds, typically requires an additional decision, namely whether to hold the securities to maturity – and if not, when to sell. The route taken by the Eurosystem limits such decisions to the covered bonds purchase programme, which is limited in size such that the effect on total liquidity can be easily neutralized.
Fiscal policy Before addressing exit considerations in further detail, let me first touch upon fiscal policies during the crisis. The extent to which the euro area fiscal response to the crisis has been shaped by the EMU architecture, and in particular the European fiscal rules, is not easy to gauge. One could argue that the answer is “not much”.