In assessing the need for action one has also to consider the instrument at hand, which is government bond purchases. In the context of the European monetary union, however, massive purchases of government bonds are not just another instrument in the Eurosystem’s regular monetary policy toolbox.
They bring with them specific risks and side-effects which are, in my view, not outweighed by the expected effect of the bond purchases. The high volume of government bond purchases will make the Eurosystem the biggest creditors of euro-area member states.