First, a need for action could emanate from renewed tensions in short-term money markets to the extent that these are propagated to the medium-term curve, in particular in an environment of receding excess liquidity in the euro area. This is distinct from the type of short-term money market volatility we saw towards the end of last year that was associated with technical factors.
Nout Wellink: Wim Duisenberg's legacy as President of the Netherlands Bank Speech by Dr Nout Wellink, President of the Netherlands Bank and Chairman of the Basel Committee on Banking Supervision, at the inaugural event for the Willem F Duisenberg Fellowship, Amsterdam, 28 February 2008.