If different assets are imperfect substitutes, interventions by the central bank that affect the supply of various assets available to private investors could influence the prices of many other assets, including investment grade bonds, equities, real estate or foreign assets with consequences for the exchange rate.13 Higher valuation would also facilitate the process of balance sheet repair that is ongoing in the euro area, and more generally contribute to support credit growth.
* * * Dear hosts, sponsors, friends and participants in Money Fair Conference 21, It is a pleasure to be able to greet you even in this virtual format. I would also like to congratulate the hosts for persevering and managing, in these still challenging circumstances, to organise such an event.