Furthermore, if market participants perceive that a brake has been released in seeing the central bank begin monetizing the fiscal deficit by even a limited amount, there is a risk that the market would become concerned with vicious inflation and loss of fiscal discipline.
Not only do Pierre and I see each other every two weeks on the ECB Governing Council and also in places like Basel – there are a great many colleagues from our respective institutions who work hand in hand in Eurosystem committees and working groups.