A number of details of the minimum reserve system that will be applied were already specified in previous documents published by the European Monetary Institute. Additional features agreed upon yesterday include the liability base, the lump-sum allowance and the rate of remuneration.
The two quotes above are testament to the firm and shared belief of today’s policy-makers that these challenges can be met only through timely and comprehensive policy coordination across countries. Yet a generation ago, both academics and policymakers shared the equally firm belief that the prospective gains from global coordination were minimal, if not negative.