This implies that even though the bulk of the liquidity is returned eventually, it is being directed within the banking system as intended. The second category of question involves concerns that some have expressed that the Eurosystem is exposing itself to excessive risks.
Much of my argument is presented considerably more eloquently in a recent paper by Max Corden, and I commend that paper to you. 3 I hope I can do some justice to the position Max puts. I will start by presenting a short summary of the global imbalance argument.